Romulus City Council on Oct. 13 adopted a tax resolution authorizing up to $10,500,000 in 2025 refunding bonds (Series 2025B and 2025C) intended to refinance prior capital issues and reduce the city's debt service.

Pat McGow, bond counsel from Miller Canfield, explained that the resolution authorizes issuance of up to $10.5 million to pay off outstanding bonds and issuance costs and that the council would proceed only if refinancing produced sufficient savings. “The resolution authorizes the issuance of up to, $10,500,000 for the refunding bonds,” McGow told council. He said the bonds would cover refunding of different prior series (roads/Amazon project and earlier water/sewer bonds) and that the transaction would move forward only if it achieved a minimum 2% savings on debt service.

Councilmember Talley and others asked for clarification about the authorization amount and how it related to outstanding principal and issuance costs. McGow described the larger authorization as including issuance costs and a cushion for market factors such as discounts, so the authorization is higher than the exact outstanding balance. The administration said the refunding should create roughly $400,000 in savings, subject to market conditions when the bonds are sold.

Miss Roscoe moved to concur with administration; Mr. Wadsworth supported the motion. The council voted by roll call; the motion passed unanimously.

The resolution directs staff to proceed with underwriting and issuance steps subject to the legal threshold that the refunding must deliver at least 2% savings on the debt service to justify the transaction.