Title
Resolution Authorizing Publication of Notice of Intent to Issue Revenue Bonds (Water Supply System Revenue Bonds) ($6,180,000.00) (Roll Call Vote)
Memorandum
This memorandum requests approval of a resolution authorizing publication of a Notice of Intent to issue $6,180,000.00 in revenue bonds backed by the Water Supply System.
On June 21, 2021 City Council approved the Barton Pump Station Valve Improvement Project (R-21-221) and authorized staff to apply for the State of Michigan Drinking Water Revolving Fund (DWRF) loan. The DWRF funding is desirable because the lower-than market interest rate and the potential for loan forgiveness.
Since Council’s approval of the project, staff has designed the project, sought construction bids, and has been selected by the State to participate in the FY 2022 3rd Quarter Closing. In order to issue the bonds, the city is required to publish a Notice of Intent. After a 45 day referendum period is completed, a resolution requesting authorization to issue the bond will be provided for Council consideration.
Budget/Fiscal Impact: This project is included in the Water Supply System Capital Improvement Plan and will be funded by the Michigan Department of Environment, Great Lakes and Energy, Drinking Water Revolving Fund program, resulting in a debt service payment to the Water Supply System Fund.
Staff
Prepared by: Marti Praschan, Financial Services Area Administrator and CFO
Reviewed by: Michelle Landis, Senior Assistant City Attorney
Approved by: Milton Dohoney Jr., Interim City Administrator
Body
CITY OF ANN ARBOR
County of Washtenaw, State of Michigan
RESOLUTION AUTHORIZING PUBLICATION OF NOTICE
OF INTENT TO ISSUE REVENUE BONDS
(Water Supply System Revenue Bonds)
Minutes of a regular meeting of the City Council of the City of Ann Arbor, County of Washtenaw, State of Michigan held on the 7th day of February, 2022, at 7:00 o’clock p.m. Eastern Time.
PRESENT: Councilmembers
ABSENT: Councilmembers
The following preamble and resolution were offered by Councilmember __________ and supported by Councilmember __________:
WHEREAS, the City of Ann Arbor, County of Washtenaw, State of Michigan (the “City”) intends to issue and sell revenue bonds, pursuant to Act 94, Public Acts of Michigan, 1933, as amended (“Act 94”), in one or more series in an aggregate principal amount not to exceed Six Million One Hundred Eighty Thousand Dollars ($6,180,000) for the purpose of paying part of the costs of acquiring and constructing additions and improvements to the City’s water supply system and;
WHEREAS, a notice of intent to issue bonds must be published at least 45 days before the issuance of the aforesaid bonds in order to comply with the requirements of Section 33 of Act 94.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City Clerk is hereby authorized and directed to publish a Notice of Intent to Issue Revenue Bonds in The Washtenaw County Legal News, a newspaper of general circulation in the City.
2. Said notice of intent shall be published as a one-quarter (1/4) page display advertisement in substantially the following form:
NOTICE TO TAXPAYERS AND ELECTORS OF THE
CITY OF ANN ARBOR AND TO USERS OF SAID CITY’S
WATER SUPPLY SYSTEM OF INTENT TO ISSUE
REVENUE BONDS AND THE
RIGHT OF REFERENDUM RELATING THERETO
PLEASE TAKE NOTICE that the City Council of the City of Ann Arbor, Washtenaw County, Michigan, intends to issue and sell Revenue Bonds, pursuant to Act 94, Public Acts of Michigan, 1933, as amended, in one or more series in an aggregate principal amount not to exceed Six Million One Hundred Eighty Thousand Dollars ($6,180,000), for the purpose of paying part of the costs of acquiring and constructing additions and improvements to the water supply system to serve the City.
SOURCE OF PAYMENT OF
REVENUE BONDS
THE PRINCIPAL OF AND INTEREST ON SAID REVENUE BONDS SHALL BE PAYABLE solely from the revenues received by the City from the operations of said water supply system. Said revenues will consist of rates and charges billed to the users of the system, a schedule of which is presently on file in the office of the City Clerk. Said rates and charges may from time to time be revised to provide sufficient revenues to provide for the expenses of operating and maintaining the system, to pay the principal of and interest on said bonds and to pay other obligations of the system.
BOND DETAILS
THE REVENUE BONDS will be payable in annual installments not to exceed twenty (20) in number and will bear interest at the rate or rates to be determined at public or private sale but in no event to exceed such rates as may be permitted by law on the unpaid balance from time to time remaining outstanding on said bonds.
RIGHT OF REFERENDUM
THE REVENUE BONDS WILL BE ISSUED WITHOUT A VOTE OF THE ELECTORS UNLESS A PETITION REQUESTING SUCH A VOTE SIGNED BY NOT LESS THAN 10% OF THE REGISTERED ELECTORS OF THE CITY IS FILED WITH THE CITY CLERK WITHIN FORTY-FIVE (45) DAYS AFTER PUBLICATION OF THIS NOTICE. IF SUCH PETITION IS FILED, THE BONDS MAY NOT BE ISSUED WITHOUT AN APPROVING VOTE OF A MAJORITY OF THE QUALIFIED ELECTORS OF THE CITY VOTING THEREON.
THIS NOTICE is given pursuant to the requirements of Section 33, Act 94, Public Acts of Michigan, 1933, as amended.
Jacqueline Beaudry
City Clerk, City of Ann Arbor
3. The City Council does hereby determine that the foregoing form of Notice of Intent to Issue Revenue Bonds and the manner of publication directed is the method best calculated to give notice to the water supply system’s users and the City’s taxpayers and electors of this City’s intent to issue the bonds, the purpose of the bonds, the security for the bonds, and the right of referendum relating thereto, and the newspaper named for publication is hereby determined to reach the largest number of persons to whom the notice is directed.
4. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same hereby are rescinded.
IN FAVOR: Councilmember ;
AGAINST: Councilmember .
I DECLARE ADOPTED.
Jacqueline Beaudry, City Clerk
I hereby certify that the foregoing is a true and complete copy of a resolution adopted by the City Council of the City of Ann Arbor, County of Washtenaw, State of Michigan, at a regular meeting held on February 7, 2022, and that said meeting was conducted and public notice of said meeting was given pursuant to and in full compliance with the Open Meetings Act, being Act 267, Public Acts of Michigan, 1976, and that the minutes of said meeting were kept and will be or have been made available as required by said Act.
Jacqueline Beaudry, City Clerk