Title
Resolution Authorizing the Issuance and Sale of 2015 Maintenance Facility Refunding Bonds (Limited Tax General Obligation) (Roll Call Vote Required - One Reading)
Memorandum
Recommended for Council is a Resolution approving the issuance by the City of Ann Arbor of its 2015 Maintenance Facility Refunding Bonds (Limited Tax General Obligation) in the maximum principal amount of $19,500,000.00 (the "Refunding Bonds"), for the purpose of refinancing the City's outstanding 2006 General Obligation Maintenance Facility Bonds (Limited Tax General Obligation) maturing in the years 2017 to 2031, inclusive. City staff and the City's municipal finance advisor, Public Financial Management, Inc. (PFM), recommend using the savings from the lower interest rate to keep annual debt service payments constant but reducing the term to 13 years from the current 15 year term. The recommendation also increases the amount of interest savings. PFM has estimated that, based on current interest rates and bond market conditions, the refunding will yield net present value debt service savings exceeding $2,375,000.00 over the 13 year term of the Refunding Bonds.
The Refunding Bonds will mature in the years 2017 through 2029. The principal maturity schedule and other terms of the Refunding Bonds have been prepared by the City's municipal finance advisor.
The Refunding Bonds are to be secured by the City's pledge of its limited tax full faith and credit, and are to be sold through competitive bidding. The Resolution authorizes the City Treasurer to execute an Order awarding the Refunding 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 review by the ...
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