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Riverview council adopts notice of intent to issue up to $20 million in water and sewer revenue bonds
Summary
Council approved a notice of intent resolution required by Michigan’s Revenue Bond Act to publish and begin the process for up to $20 million in water and sewer revenue bonds and declared intent to reimburse prior expenditures under federal tax rules.
The Riverview City Council on May 19 adopted a notice-of-intent resolution to issue water and sewer revenue bonds in an amount not to exceed $20,000,000 for major improvements to the city’s water and sewer system.
City Attorney (presentation) and staff explained the procedural and federal-tax reasons for the resolution. The resolution begins the public-notice and referendum period required by the Revenue Bond Act (Public Acts of Michigan, 1933, No. 94, as amended) and declares the city’s intent to reimburse certain expenditures made prior to bond issuance under Treasury Regulation 1.150-2. The revenue-bond process requires the city to publish notice and allows registered electors and users of the system a 40-day period to submit a valid petition to force a referendum; the reimbursement declaration covers expenditures made up to 60 days prior to the resolution date to comply with federal tax rules.
Council Member Gagnaga moved to adopt the notice-of-intent resolution; Council Member Pray seconded. The motion passed on a roll-call vote with Council Members Gagnaga, O'Neil, Pray, Robins and Mayor Pro Tem Webb voting yes; Mayor Swift and Council Member Workman were excused.
The resolution is a preliminary procedural step and does not itself authorize issuance of bonds or set final terms. Staff also noted the council previously approved appointing bond counsel and financial advisors on the consent agenda to support the issuance process.
