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File #: 13-1094    Version: 2 Name: 10/7/13 Amendment to Ordinance No. 13-19 Authorizing Sewage Disposal System Revenue Refunding Bonds, Series 2013
Type: Ordinance Status: Passed
File created: 10/7/2013 In control: City Council
On agenda: 10/7/2013 Final action: 10/7/2013
Enactment date: 10/7/2013 Enactment #: ORD-13-26
Title: Amendment to Ordinance No. 13-19 Authorizing Sewage Disposal System Revenue Refunding Bonds, Series 2013 (Roll Call Vote - One Reading Only) (ORD-13-26)
Attachments: 1. 13-26 Briefed and Approved.pdf, 2. Revised BH01-#1890954-v2-A2 Amendment to Ordinance _ 2013 Sewer System Refunding, 3. BH01-#1890954-v1-A2_Amendment_to_Ordinance___2013_Sewer_System_Refunding
Related files: 13-0694
Title
Amendment to Ordinance No. 13-19 Authorizing Sewage Disposal System Revenue Refunding Bonds, Series 2013 (Roll Call Vote - One Reading Only) (ORD-13-26)
Memorandum
On July 1, 2013, Council approved Ordinance No. 13-19 authorizing the issuance of Sewage Disposal System Revenue Refunding Bonds, Series 2013 in an aggregate principal amount not exceeding $21,500,000 for the purpose of refunding all or a portion of the City’s Sewage Disposal System Revenue Bonds, Series XIX. Section 3 of Ordinance No. 13-19 provided that the bonds shall not be issued unless the refunding of the prior bonds yields a net present value savings of at least 5%. This provision exceeded the requirements of the City’s adopted Debt Policy, which states that net present value savings shall be at least 3%.

Long term interest rates have increased since that ordinance was passed, thereby causing the expected savings to be less than 5%. Although the savings are less than anticipated, the City can expect to realize savings of approximately $900,000 from the issuance of these bonds. It is proposed that such provision be amended to require debt service savings of at least 3%, consistent with the City’s debt policy, allowing the City to proceed with issuance.
Staff
Prepared by: Matthew V. Horning, Treasurer
Reviewed by: Tom Crawford, Financial & Administrative Services Administrator
Approved by: Steven D. Powers, City Administrator
Body
ORDINANCE NO. ORD-13-26

First Reading : October 7, 2013 Approved: October 7, 2013
Public Hearing: n/a Published: October 10, 2013
Effective: October 7, 2013

CITY OF ANN ARBOR
County of Washtenaw, State of Michigan
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amendment to ordinance No. 13-19 authorizing sewage disposal system revenue refunding bonds, series 2013

Minutes of a regular meeting of the City Council of the City of Ann Arbor, County of Washtenaw, State of Michigan, held on Monday, October 7, 2013, at 7:00 o’clock p.m. Eastern Tim...

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