Title
An Ordinance Authorizing the Issuance and Sale of Water Supply System Revenue Refunding Bonds, Series 2012, of Equal Standing with Certain Outstanding Water Supply System Revenue Bonds (Roll Call Vote Required - One Reading)
Memorandum
Recommended for Council is an Ordinance approving the issuance by the City of Ann Arbor of its Water Supply System Revenue Refunding Bonds, Series 2012 in the maximum principal amount of $11,750,000.00 (the “Refunding Bonds”), for the purpose of refinancing the City’s outstanding Water Supply System Revenue Bonds, Series W (issued December 1, 1998), Series X (issued May 1, 2002) and Series Z (issued issued February 1, 2004), maturing in the years 2013 to 2024, inclusive. The City’s municipal finance advisors have calculated that based on current interest rates, after factoring in bond issuance costs, the refunding will yield net present value debt service savings of approximately $555,000.00 over the 12 year term of the Refunding Bonds.
The Refunding Bonds will mature in the years 2013 through 2024, and will be secured by the net revenues of the System. The principal maturity schedule and other terms of the Refunding Bonds have been prepared by the City’s municipal financial advisors.
The Refunding Bonds are to be sold through competitive bidding. The Ordinance authorizes the City Treasurer to execute an Order awarding the Bonds to the lowest bidder based on the lowest true interest cost to the City. The Ordinance authorizes the Mayor, City Clerk, Chief Financial Officer and City Treasurer 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: Matthew V. Horning, City Treasurer
Reviewed by: Mary Joan Fales, Senior Assistant City Attorney
Approved by: Steven D. Powers, City Administrator
Body
ORDINANCE NO. ORD-12-06
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