Title
Adoption of Resolution authorizing the County Bond Counsel to proceed with the necessary actions to refund the Crake and Chester Drain Debt
Body
Whereas, pursuant to the provisions of Chapter 20 of Act No. 40, Public Acts of Michigan, 1956, as amended, the Chester Drainage District has issued its Drain (LTGO) Bonds dated February 1, 1995 (the "Prior Bonds"), in the original principal amount of $2,450,000 to defray part of the cost of acquiring and constructing the Chester Drain in anticipation of the collection of the several installments against the City of Rochester Hills (the "City") on the Special Assessment Roll for the Chester Drain; and
Whereas, the City of has been advised that conditions in the bond market have now improved from the conditions which prevailed at the time the Prior Bonds were sold and that the Prior Bonds could be refunded at a considerable savings to the City; and
Whereas, it is the determination and judgment of this City Council that the Prior Bonds should be refunded to secure for the City the anticipated savings.
Now Therefore Be It Resolved by the City Council of the City of Rochester Hills, Michigan, as follows:
1. The Chester Drainage District is requested and authorized to issue its refunding bonds (the "Refunding Bonds") pursuant to the provisions of Act No. 34, Public Acts of Michigan, 2001, as amended, in an amount necessary to refund all or part of the Prior Bonds (as shall be determined by the Drainage Board) and paying the costs of issuing the Refunding Bonds.
2. The proceeds of the Refunding Bonds shall be sufficient to pay the costs of issuing the Refunding Bonds and to establish an Escrow Fund in an amount which will be sufficient to pay the principal of, the redemption premiums on, and the interest on the Prior Bonds that are refunded without further payment by the City.
3. The City agrees and consents to the imposition of special assessments against the City on a refunding bonds special assessment roll for...
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