Title
An Ordinance Authorizing and Providing for the Issuance and Sale of Water Supply System Revenue Bonds, Series 2008-A, of Equal Standing with Certain Outstanding Water Supply System Revenue Bonds (Roll Call Vote Required - One Reading)
Memorandum
Recommended for Council is an Ordinance approving the issuance of Water Supply System Revenue Bonds, Series 2008-A (“Bonds”), in the maximum principal amount of $26,000,000, for the purpose of financing the acquisition and construction of extensions and improvements to the City’s Water Supply System (“System”). The Bonds are secured solely by the net revenues of the System.
The Bonds are to be sold by competitive sale. The Ordinance authorizes the Chief Financial Officer and Treasurer to execute a Sales Order awarding the Bonds to the lowest bidder based on the calculation of the lowest true interest cost to the City.
The City’s bond counsel, Dykema Gossett, prepared the ordinance with further review by the City Attorney.
Staff
Prepared by: Tom Crawford, Chief Financial Officer
Reviewed by: Mary Fales, Senior Assistant City Attorney
Body
ORDINANCE NO. ORD-08-09
AN ORDINANCE AUTHORIZING THE ACQUISITION AND CONSTRUCTION OF EXTENSIONS AND IMPROVEMENTS TO THE WATER SUPPLY SYSTEM OF THE CITY OF ANN ARBOR; AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF REVENUE BONDS OF EQUAL STANDING WITH CERTAIN OUTSTANDING WATER SUPPLY SYSTEM REVENUE BONDS FOR THE PURPOSE OF PAYING THE COST OF SAID EXTENSIONS AND IMPROVEMENTS; TO PROVIDE FOR THE COLLECTION OF REVENUES FROM THE SYSTEM SUFFICIENT FOR THE PURPOSE OF PAYING THE COSTS OF OPERATION AND MAINTENANCE OF THE SYSTEM AND TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS AND CERTAIN OUTSTANDING BONDS OF THE SYSTEM; TO PROVIDE AN ADEQUATE RESERVE FUND FOR THE BONDS AND OUTSTANDING BONDS OF THE SYSTEM; TO PROVIDE FOR THE SEGREGATION AND DISTRIBUTION OF THE REVENUES; TO PROVIDE FOR THE RIGHTS OF THE HOLDERS OF THE BONDS AND OUTSTANDING BONDS OF THE SYSTEM IN ENFORCE...
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