Kalamazoo Commission adopts notices of intent for $153.7 million in 2025 bonds

The Kalamazoo City Commission on Monday voted unanimously to adopt notices of intent to issue three bond series totaling up to $153.7 million for 2025 infrastructure projects, the first formal step required before the city moves to market borrowing.

Chief Financial Officer Steve Desensi said the three actions cover an $11.5 million wastewater system revenue bond, a $12.2 million capital improvement bond and a $130 million water supply system revenue bond. "These amounts all come from our capital plan which was approved in the budget," Desensi said, adding that roughly $100 million of the water-supply bonding relates to DWSRF-eligible projects and that the city has $20 million in principal forgiveness awarded to those projects. He said the below-market interest rate on some borrowing is expected to be about 2 percent, saving an estimated $400,000–$500,000 a year in interest costs.

The action matters locally because the bonds will fund work listed in the city capital plan: lead service-line replacements, PFAS mitigation and treatment, consolidation of pumping stations, and major street, parking, parks and general capital improvements. Commissioners framed the vote as an investment in long-lived municipal infrastructure. "We're replacing pipes in the ground that are 50 to a hundred years old," Mayor David F. Anderson said in remarks supporting the measures. "This is a system that's gonna be a place for generations hence." Commissioner Bridal described the package as "a lot of cheddar" but said taking advantage of forgivable funds and low rates made the steps worthwhile.

The commission followed staff presentations and a 45-day public-notice period required before moving forward; staff said the notices will be posted and, if no valid petition is filed within 45 days, the city will proceed with subsequent bonding steps. The motions were made and seconded as follows: item H1 (wastewater revenue bonds) — motion by Commissioner Cooney, supported by Vice Mayor Jean Hess; item H2 (capital improvement bonds) — motion by Commissioner Hoffman, supported by Commissioner Bridal; item H3 (water supply revenue bonds) — motion by Commissioner Cooney, supported by Commissioner Prado. Clerk Burling recorded a unanimous roll call (yes votes from Commissioners Hoffman, Prado, Wilson, Bridal, Cooney, Vice Mayor Hess and Mayor Anderson) for each action.

No petitions or public comments were made during the items; staff said more detailed project lists are available on the city website and in the capital plan adopted in January. The actions are notices of intent only; final bond documents, sale terms and closing dates will return to commission files and public records as the city advances each financing.

The commission proceeded to other business after the votes; the meeting included additional routine agenda items and public comment before adjourning into a closed session.