Title
Resolution Authorizing the Issuance and Sale of 2015 Open Space Preservation Refunding Bonds (Limited Tax General Obligation) (Roll Call Vote Required)
Memorandum
Recommended for Council is a Resolution approving the issuance by the City of Ann Arbor of its 2015 Open Space Preservation Refunding Bonds (Limited Tax General Obligation) in the maximum principal amount of $17,500,000 (the "Refunding Bonds"), for the purpose of refinancing the City's outstanding 2005 Open Space Preservation Bonds (Limited Tax General Obligation) maturing in the years 2016 to 2033, inclusive. The City's municipal finance advisor, Stauder Barch & Associates, Inc., has estimated that, based on current interest rates and bond market conditions, the refunding will yield net present value debt service savings exceeding $1,800,000 over the 18 year term of the Refunding Bonds.
The Refunding Bonds will mature in the years 2016 through 2033. The principal maturity schedule and other terms of the Bonds have been prepared by the City's municipal finance advisor.
The Bonds are to be secured by and payable primarily from the one-half mill levy approved by the electors of the City on November 3, 2003 to fund the Parks and Greenbelt Open Space Program, and further secured by the City's pledge of its limited tax full faith and credit. Under this Resolution, the City reserves the right to issue additional bonds secured by the Parks and Greenbelt Millage.
The Refunding Bonds are to be sold through competitive bidding. The Resolution 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 Resolution 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 PLLC, prepared the Resolution, with further revi...
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