Livingston County amends bond parameters, approves pension refinancing plan and related measures
February 23, 2026 | Livingston County, Michigan
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The Livingston County Board of Commissioners on Feb. 23 approved a set of resolutions aimed at addressing the county’s unfunded pension liabilities and improving long‑term fiscal predictability.
Commissioner Nakagiri presented a 10‑year pension stress‑test comparing a bond issuance to a no‑bond path and argued that issuing limited‑tax general obligation bonds would reduce long‑term pension debt and increase pension assets across bull, expected and bear market scenarios. Bond counsel Eric McLaughlin and financial advisor Carrie Blanchard of PFM outlined the resolution’s parameters, including a maximum term and an interest‑rate ceiling.
Commissioners pressed for tighter parameters. The board amended the resolution to lower the interest‑rate ceiling from 6% to 3.5% and carried the amendment unanimously. Commissioners also discussed structural options such as interest‑only deferral in the first two years, the timing for finalizing bond terms (roughly 10 days before a sale), and making exhibits A and B (bond form and notice of sale) part of the official record.
Related actions approved included a resolution authorizing a contingent additional contribution to MERS of $12,756,000 (dependent upon bond proceeds) and a separate authorization to issue limited‑tax general obligation bonds with a $12.9 million ceiling to allow for issuance costs. The board also authorized issuance of an RFP to retain an independent actuarial consultant to advise on pension forensics and strategic oversight; commissioners discussed that consultant costs are unknown pending proposals (ballpark cited at $15,000–$35,000).
Votes at a glance:
- Limited‑tax GO bonds (series 2026) as amended — amendment lowering interest cap to 3.5% carried 9‑0; final bond authorization carried 9‑0.
- Resolution authorizing contingent additional MERS contribution ($12,756,000) — carried (roll‑call recorded as carried; contingent on bond sale proceeds).
- Resolution to optimize pension funding via strategic asset transfer — carried 9‑0.
- Authorization to seek RFPs for independent actuarial consultant — carried 9‑0.
Next steps: county staff and bond counsel will finalize offering documents, obtain credit ratings (3–4 week process), and return to the board with the final sale parameters for the authorized officers to execute or for the board to reconvene if necessary.
Commissioner Nakagiri presented a 10‑year pension stress‑test comparing a bond issuance to a no‑bond path and argued that issuing limited‑tax general obligation bonds would reduce long‑term pension debt and increase pension assets across bull, expected and bear market scenarios. Bond counsel Eric McLaughlin and financial advisor Carrie Blanchard of PFM outlined the resolution’s parameters, including a maximum term and an interest‑rate ceiling.
Commissioners pressed for tighter parameters. The board amended the resolution to lower the interest‑rate ceiling from 6% to 3.5% and carried the amendment unanimously. Commissioners also discussed structural options such as interest‑only deferral in the first two years, the timing for finalizing bond terms (roughly 10 days before a sale), and making exhibits A and B (bond form and notice of sale) part of the official record.
Related actions approved included a resolution authorizing a contingent additional contribution to MERS of $12,756,000 (dependent upon bond proceeds) and a separate authorization to issue limited‑tax general obligation bonds with a $12.9 million ceiling to allow for issuance costs. The board also authorized issuance of an RFP to retain an independent actuarial consultant to advise on pension forensics and strategic oversight; commissioners discussed that consultant costs are unknown pending proposals (ballpark cited at $15,000–$35,000).
Votes at a glance:
- Limited‑tax GO bonds (series 2026) as amended — amendment lowering interest cap to 3.5% carried 9‑0; final bond authorization carried 9‑0.
- Resolution authorizing contingent additional MERS contribution ($12,756,000) — carried (roll‑call recorded as carried; contingent on bond sale proceeds).
- Resolution to optimize pension funding via strategic asset transfer — carried 9‑0.
- Authorization to seek RFPs for independent actuarial consultant — carried 9‑0.
Next steps: county staff and bond counsel will finalize offering documents, obtain credit ratings (3–4 week process), and return to the board with the final sale parameters for the authorized officers to execute or for the board to reconvene if necessary.
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