Title
Resolution Authorizing Publication of Notice of Intent to Issue Revenue Bonds (Water Supply System Revenue Bonds)
Memorandum
Recommended for Council is the publication of a notice of intent (“Notice”) to issue water supply system revenue bonds in the maximum principal amount of $25,000,000, for the purpose of financing the acquisition and construction of additions and improvements to the City’s water supply system.
The first series of bonds to be issued pursuant to the Notice (expected to be in the principal amount of approximately $7,225,000) will be sold directly to the Michigan Municipal Bond Authority (“Bond Bank”) as part of its Drinking Water Revolving Fund program. The Public Services Area staff has applied for approval from the Bond Bank to participate in this financing program, scheduled to close on January 22, 2010. The initial series of Bonds sold to the Bond Bank will bear interest at a rate substantially lower than market rates and will mature over 20 years. The Bonds will be secured by and payable solely from revenues of the City’s Water Supply System.
The Resolution authorizes the City Clerk to publish the Notice.
The City’s bond counsel, Dykema Gossett, prepared the Resolution with further review by the City Attorney.
Staff
Prepared by: Tom Crawford, Chief Financial Officer
Reviewed by: Mary Joan Fales, Senior Assistant City Attorney
Approved by: Roger W. Fraser, City Administrator
Body
CITY OF ANN ARBOR
County of Washtenaw, State of Michigan
__________________________________
RESOLUTION AUTHORIZING PUBLICATION OF NOTICE
OF INTENT TO ISSUE REVENUE BONDS
(Water Supply System Revenue Bonds)
Minutes of a regular meeting of the City Council of the City of Ann Arbor, County of Washtenaw, State of Michigan held on the 19th day of October, 2009, at 7:00 o’clock p.m. Eastern Time.
PRESENT: Members
ABSENT: Members
The following preamble and resolution were offered by Member and supported by Member :
WHEREAS,...
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