Title
Resolution Approving the General Obligation Limited Tax Refunding Bonds, Series 2012 (Roll Call Vote Required - One Reading)
Memorandum
Recommended for Council is a Resolution approving the issuance by the City of Ann Arbor of its General Obligation Limited Tax Refunding Bonds, Series 2012 in the maximum principal amount of $2,400,000.00 (the "Refunding Bonds"), for the purpose of refinancing the $2,230,000.00 outstanding principal amount Building Authority Bonds (Fourth and William Parking Structure Project) (Limited Tax General Obligation), originally issued by the City's Building Authority in 2002. The City's municipal financial advisors have calculated that based on current interest rates, and after factoring in bond issuance costs, the refunding will yield net present value debt service savings of approximately $195,000.00 over the next 10 years. The Refunding Bonds are to be sold through competitive bidding.
The Refunding Bonds will mature in the years 2013 through 2022. The principal maturity schedule and other terms of the Refunding Bonds have been prepared by the City's municipal financial advisors. Under the Resolution the City pledges its limited tax full faith and credit for payment of the Refunding Bonds.
The Resolution authorizes the Mayor, City Clerk, City Treasurer and Chief Financial Officer to execute and deliver all required documentation in connection with the issuance, sale and delivery of the Refunding Bonds.
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: Steven D. Powers, City Administrator
Body
Whereas, The Revised Municipal Finance Act, Act 34, Public Acts of Michigan, 2001, as amended ("Act 34"), authorizes the City of Ann Arbor, County of Washtenaw, State of Michigan (the "City"), to refund all or any part of its out...
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