Title
An Ordinance Authorizing the Issuance and Sale of Sewage Disposal System Revenue Bonds to the Michigan Finance Authority for Waste Water Treatment Plant Project (Roll Call Vote Required - One Reading)
Memorandum
Recommended for Council is an Ordinance approving the City's issuance of Sewage Disposal System Revenue Bonds in the maximum principal amount of $120,000,000 (the "Bonds"), for the purpose of financing renovations and improvements to the Wastewater Treatment Plant of the City's Sewage Disposal System (the "Project"). The Bonds are to be sold directly to the Michigan Finance Authority as part of the State of Michigan's Water Pollution Control Revolving Fund Program. The Bonds are to be issued in two series. The first series is scheduled to be issued on April 10, 2012 in the principal amount of $37,000,000 to finance the first phase of the Project. The second series of the Bonds is scheduled to be issued in the first half of calendar year 2013.
The Bonds will bear interest at rates substantially lower than market rates (2.50% for the first series) and will mature in annual principal installments from 2017 through 2037. The Bonds will be secured by and payable solely from the Net Revenues of the Sewage Disposal System.
The Ordinance authorizes the Mayor, City Clerk, City Administrator, Chief Financial Officer and Treasurer to execute and deliver all required documentation in connection with the issuance, sale and delivery of the Bonds.
The City's bond counsel, Dykema Gossett PLLC, has prepared the Ordinance, with further review by the City Attorney.
Staff
Prepared by: Matthew V. Horning, Treasurer
Reviewed by: Mary Joan Fales, Senior Assistant City Attorney
Approved by: Steven D. Powers, City Administrator
Body
(See Attached Ordinance)