Title
Resolution Approving the 2012 Michigan Transportation Fund Refunding Bonds (General Obligation - Limited Tax) (Roll Call Vote Required)
Memorandum
Recommended for Council is a Resolution approving the issuance by the City of Ann Arbor of its 2012 Michigan Transportation Fund Refunding Bonds (General Obligation - Limited Tax) in the maximum principal amount of $2,850,000 (the “Refunding Bonds”), for the purpose of refinancing $2,660,000 of the City’s outstanding principal amount 2003 Michigan Transportation Fund Bonds (Broadway Bridges Project) General Obligation Limited Tax maturing in the years 2013 to 2023, inclusive, originally issued on April 1, 2003. The City’s municipal finance 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 $185,000 over the next 11 years. The Refunding Bonds are to be sold through competitive bidding.
The Refunding Bonds will mature in the years 2013 through 2023. 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 Refunding Bonds are primarily payable from and secured by a pledge of Michigan Transportation Fund payments due and owing to the City, and as additional security the City will pledge its limited tax full faith and credit for payment of the Refunding Bonds. The Resolution is required by law to be approved by not less than 2/3 of the Members-elect of the City Council.
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: Matthew V. Horning, City Treasurer
Reviewed by: Mary Joan Fales, ...
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