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Council hires PFM for bond‑advisory services as city prepares to issue bonds
Summary
Sterling Heights contracted PFM Financial Advisors for municipal bond‑advisory work on a multi-year basis; the contract carries no retainer and PFM will be paid fees tied to bond transactions when the city issues debt.
Sterling Heights City Council on May 6 approved an agreement with PFM Financial Advisors (Ann Arbor) to provide bond‑advisory services for the city from May 7, 2025 through Dec. 31, 2029, with a manager‑authorized option to extend for an additional three years.
Finance Director Jennifer Varney explained the city uses two professional services when issuing bonds: bond counsel (legal) and a bond advisor (market and transaction advisor). She said the firm performs tasks including preparing the official statement, developing amortization schedules and marketing bonds to investors. The selected firm will only be paid when bonds are issued; there is no retainer. The recommended selection followed market changes and consolidation in the municipal advisory field and a comparative review of proposals.
Why it mattered: Council approved the contract as staff prepared to issue bonds for projects discussed under the adopted budget (including Pathways to Play & Preservation projects). Varney said the chosen firm offered competitive pricing and prior experience with municipal clients.
Council action: The consent‑agenda approval authorizes the city manager to sign the agreement and any mutually agreed extensions. The contract authorizes fees based on bond issuance amounts; staff said specific fees will be known at the time of any planned bond sale.
Next steps: Staff will engage PFM as needed during bond‑marketing and issuance preparations, including possible presentations to rating agencies, official statement preparation and secondary‑market sale work.
