Title
Request for Authorization to refund all or part of the outstanding County issued Rewold Drainage District Phase II Bonds, Series 2005
Body
Whereas, pursuant to the provisions of Chapter 20 of Act No. 40, Public Acts of Michigan, 1956, as amended, the Rewold Drainage District has issued its Drain Bonds, Phase II Drain Improvements, Series 2005 dated August 1, 2005, in the original principal amount of $3,235,000 (collectively, the "Prior Bonds"), to refund bonds originally issued to defray part of the cost of constructing the Rewold Drain in anticipation of the collection of the several installments against the City of Rochester Hills (the "City"), the County of Oakland (the "County"); and the State of Michigan (the “State”); and
Whereas, the City 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 the County; 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 Rewold 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 provided that the final result of the refunding, to the City, is a Net Present Value Savings of $100,000 or more and at least 2%.
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, ...
Click here for full text