Title
Resolution Authorizing Publication of Notice of Intent to Issue Revenue Bonds (Sewage Disposal System Revenue Bonds not to Exceed $120,000,000.00)
Memorandum
Recommended for Council is the publication of a notice of intent (“Notice”) to issue sewage disposal system revenue bonds in the maximum principal amount of $120,000,000, for the purpose of financing the costs of acquiring, constructing and installing renovations and improvements to the waste water treatment facilities of the City’s Sewage Disposal System.
The first series of Bonds to be issued pursuant to the Notice is expected to be sold directly to the Michigan Finance Authority (“Bond Bank”) as part of the State of Michigan’s Water Pollution Control Revolving Fund program, with such Bonds to bear interest at a rate substantially lower than market rates (currently 2.50%). The Bonds will be secured by and payable solely from revenues of the City’s Sewage Disposal System.
Council has been aware of this project through previous Capital Improvement Plans (CIPs), but staff was planning to refresh Council with status and details of this project at the January 17 Working Session. Staff originally anticipated having this NOI resolution be considered at the following Council meeting on January 23rd, but the State is awarding the bond on March 12 so this resolution needs to be considered by Council on January 9 in order to meet appropriate timing requirements.
It’s important to note that approval of this resolution starts a 45 notice period to the public about the City’s intent to issue the bond. The bond cannot be actually issued without 1. Council’s authorization to issue the bond - anticipated March 5th meeting and 2. Expiration of the 45 notice period without a successful petition from residents requesting that the matter be brought to a vote of the electors.
The Resolution authorizes the City Clerk to publish the Notice. The City’s bond counsel, Dykema Gossett, prepared the Resolution with furt...
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