Trustees hear experts on proposed $6.265 million sewer bond and timeline

Bond counsel Emily Barr and financial adviser Andy Campbell explained to the Bath Charter Township Board of Trustees on Sept. 8 why the township is considering issuing bonds to finance sewer projects and how the process works.

"They are how the township gets a loan," Emily Barr of Miller Canfield said, describing municipal bonds as a multistep legal process that notifies residents and preserves their referendum rights. She told trustees the notice-of-intent resolution would begin a 45-day window during which 10% of registered voters could demand a referendum on any borrowing.

Andy Campbell, the board's independent financial adviser, presented three term scenarios and conservative interest-rate estimates: 15 years at about 4.25%, 20 years at about 4.5%, and 25 years at about 4.75%. Campbell said the sale is targeted for Jan. 14, 2027, with an expected closing about Feb. 4. "The sewer fund currently has around $3,000,000 in it right now," Campbell said, adding that the projects themselves are estimated at $6,265,000 total.

Trustees asked how the referendum would work and who would be eligible to sign a petition; Barr said valid signatures from 10% of the township's registered voters would be required and the notice does not obligate the board to borrow. Staff said the board would see the official notice-of-intent resolution and engagement documents at the next meeting and could choose whether to adopt them then.

The advisers emphasized that bond proceeds would be repaid from sewer rates and that bond terms, denominations and broker reselling fees will be set during sale planning. Staff and advisers also described the timing constraints of the notice-and-sale calendar and the need for staff to have delegations written into the authorizing resolution to allow timely actions on sale day.