Title
Resolution Authorizing Publication of Notice of Intent to Issue General Obligation Capital Improvement Bonds to Fund Airport Box Hangar Project (Not To Exceed $900,000.00)
Memorandum
Recommended for Council is the publication of a notice of intent to issue general obligation capital improvement bonds in the maximum principal amount of $900,000.00 for the purpose of refinancing the costs of acquiring and constructing six box hangars at the Ann Arbor Airport, which costs were initially funded through an advance from the City’s pooled investment fund.
Following our Fiscal Year 2012 audit, the State of Michigan determined that this advance constituted a deficit position in our Airport Fund (Fund 0048). We were therefore required to submit a deficit elimination plan. That plan consisted of our intent to issue these bonds to eliminate the perceived deficit resulting from the advance from the pooled investment fund. Additionally, we expect that this bond issue will result in over $50,000.00 in savings to the Airport Fund as a result of the current low interest rate environment.
Debt service on the bonds is expected to be paid from Ann Arbor Airport revenues. The bonds will mature over twelve (12) years, are to be secured as a limited tax general obligation of the City, and will be sold through competitive or negotiated sale.
The City’s bond counsel, Dykema Gossett, prepared the notice 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
CITY OF ANN ARBOR
County of Washtenaw, State of Michigan
__________________________________
RESOLUTION AUTHORIZING PUBLICATION
OF NOTICE OF INTENT TO ISSUE GENERAL OBLIGATION
CAPITAL IMPROVEMENT BONDS
(AIRPORT BOX HANGAR project)
Minutes of a regular meeting of the City Council of the City of Ann Arbor, County of Washtenaw, State of Michigan, held on Monday, July 1...
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