Title
Resolution Authorizing the Issuance and Sale of 2017 Court and Police Facilities 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 2017 Court and Police Facilities Refunding Bonds (Limited Tax General Obligation) in the maximum principal amount of $26,000,000 (the "Refunding Bonds"), for the purpose of refinancing the City's outstanding 2008 Court and Police Facilities Capital Improvement Bonds (Limited Tax General Obligation) maturing in the years 2019 to 2038, inclusive (the "Prior Bonds"). The City's municipal finance advisor, Public Financial Management, Inc., has calculated that, based on current interest rates and bond market conditions, the refunding will yield net present value debt service savings of approximately $2,900,000 over the 18-year term of the Refunding Bonds.
The Refunding Bonds are currently structured to mature in the years 2018 through 2035, shortening the final maturity of the Prior Bonds by three years. 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 City Attorney.
Staff
Prepared by: Matthew V. Horning, City Treasurer
Reviewed by: Mary Joan Fales, Senior Assistant City Attorney
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