Commission approves ordinance authorizing up to $42 million in sewer bonds for wastewater improvements

Traverse City’s City Commission on June 2 introduced and enacted an ordinance authorizing issuance of up to $42 million in revenue bonds to finance sanitary sewer system improvements and related costs. The commission adopted the ordinance with language to give it immediate effect pursuant to the Michigan Revenue Bond Act.

Background and authority: The city applied to the state’s low-interest loan program (SRF/Eagle/EGLE) and qualified for financing at an estimated 2.5% for 20 years. Bond counsel and the city's financial advisor described the action as the final local approval required to meet the state timetable; the EGLE order is expected later in June and loan closing in early July.

Why it mattered: The funds will pay for multi-year sewer system upgrades that have been in planning and design for several years; the action keeps the city on the state timeline to receive low-interest financing for a major capital project.

Details: Pat McGough, bond counsel, summarized the SRF process and noted that earlier notice-of-intent steps had increased the maximum amount to $42 million. City staff said the ordinance technically follows a resolution-like process per state statute and does not require the city's customary ordinance reading schedule; the ordinance must be published in full once after passage.

Outcome and next steps: With the ordinance enacted, the state agencies will finalize the loan amount and issue the order in late June; financing is expected to close in early July and funds to be available thereafter.