Title
An Ordinance Authorizing the Issuance and Sale of Water Supply System Revenue Bonds, Series 2011-A to the Michigan Municipal Bond Authority (Roll Call Vote Required - One Reading)
Memorandum
Recommended for Council is an Ordinance approving the issuance by the City of its Water Supply System Revenue Bonds, Series 2011-A in the maximum principal amount of $755,000 (the "Bonds"), for the purpose of financing a portion of the costs of additions and improvements to the City's water distribution system, including the Harbal/Leaird Water Main and Nob Hill Water Main Replacements projects. The Bonds are to be sold directly to the Michigan Municipal Bond Authority ("Bond Bank") as part of its Drinking Water Revolving Fund (DWRF) program. The Public Services Area staff has received approval from the Bond Bank to participate in this financing program, scheduled to close on April 8, 2011.
The Bonds will bear interest at a fixed rate substantially lower than market rates (2.50%) and will mature over 20 years. This will be the City's third such revenue bond financing through the Bond Bank's DWRF program. The Bonds will be secured by and payable solely from revenues of the Water Supply System.
The Ordinance authorizes the Mayor, City Clerk, Chief Financial Officer and Treasurer to execute and deliver all required documentation in connection with the issuance, sale and delivery of the Bonds.
The City's bond counsel, Dykema Gossett PLLC, has prepared the Ordinance, with further review by the City Attorney.
Staff
Prepared by: Tom Crawford, Chief Financial Officer
Reviewed by: Mary Joan Fales, Senior Assistant City Attorney
Approved by: Roger Fraser, City Administrator
Body
(See Attached Ordinance)