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Alpena council authorizes up to $4.1 million for general obligation bond sale
Summary
The council approved a resolution authorizing issuance of General Obligation Limited Tax Bond Series 2025, setting a $4.1 million maximum and delegating final sale details to authorized officers; the bonds will be advertised and sold in the coming week.
The Alpena City Council on Sept. 2 approved a resolution authorizing issuance of General Obligation Limited Tax Bond Series 2025, allowing a maximum issue of $4,100,000 and delegating final sale details to designated city officers. Roger Swetz, introduced by city staff as an online presenter from Dickinson, described the measure as the city’s “final formal approval of the issuance of the bonds.”
The resolution sets advertising and sale parameters: the bonds were to be advertised for sale at $4,045,000 and the actual sale will occur one week after publication, with the city required under state law to accept the low bid or reject all bids. Swetz said the resolution establishes bidding parameters including a 6% maximum interest rate but told council the actual rate “will be much lower than that.” He also described the proposed maturity structure as a 20-year issue.
City Manager Rachel Smolinski told the council the resolution delegates authority to specified officers — including the mayor, city manager and clerk/treasurer/finance director — to finalize details and sign closing documents electronically if the sale proceeds as planned. Swetz said the sale notice will appear in The Bond Buyer and bidders will submit competitive bids; the city then either accepts the low bid or rejects all bids in accordance with state requirements.
Council members voted to adopt Resolution No. 2025-9. Council member Mitchell, Council member Kreher and Mayor Johnson were recorded as voting “aye”; no votes against or abstentions were recorded on the motion on the meeting record.
Why it matters: authorizing the issue allows the city to proceed with borrowing for capital purposes; the resolution preserves flexibility in the final amount and delegates execution steps so staff can complete the sale if bids are acceptable. The council can expect closing documents and electronic signatures to be completed by the officers identified in the resolution.
What’s next: the sale will proceed after the required notice period; if the bids are acceptable the city will award to the low bidder and complete closing documents electronically.
