Title
Resolution Authorizing 2019 Capital Improvement Refunding Bonds (Limited Tax General Obligation) (8 Votes Required) (Roll Call Vote Required)
Memorandum
Recommended for Council is a Resolution approving the issuance by the City of Ann Arbor of its 2019 Capital Improvement Refunding Bonds (Limited Tax General Obligation) in the maximum principal amount of $42,000,000.00 (the "Refunding Bonds"), for the purpose of refinancing the City's outstanding Capital Improvement Bonds (Limited Tax General Obligation), Series 2009-A (Taxable Build America Bonds-Direct Payment), maturing in the years 2020 to 2035, inclusive (the "Prior Bonds"). The City's municipal finance advisor, PFM Financial Advisors LLC, has calculated that, based on current interest rates and bond market conditions, the refunding will yield net present value debt service savings of approximately $1,450,000.00 over the 17 year term of the Refunding Bonds.
The Refunding Bonds are currently structured to mature in the years 2020 through 2035. 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: Michael J. Pettigrew, Deputy Treasurer
Reviewed by: Betsy Blake, Senior Assistant City Attorney
Reviewed by: Tom Crawford, Chief Financial Officer
Approved by: Howa...
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