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Council approves bond counsel engagement, notice of intent to seek up to $5M for police and fire buildings
Summary
St. Clair Shores approved Miller Canfield’s engagement and a notice of intent to pursue bonds not to exceed $5 million to cover a roughly $4 million shortfall on new police and fire buildings. Council approved the request 5–2; final bond amounts, terms and debt service will return to council for approval.
St. Clair Shores City Council approved a letter of engagement with Miller Canfield and a resolution of intent to pursue bonds up to $5 million to help finance new police and fire facilities. The motion passed on a 5–2 vote.
City Manager Lent told the council the city is approximately $4 million short on the two construction projects and that the notice of intent is needed to begin the bonding process. “This is a price not to exceed $5,000,000,” Lent said, adding that the final bond amount, term and interest rates will be returned to council for final approval. He said the city will engage a municipal finance advisor to work with bond counsel; Miller Canfield’s fees are paid from bond proceeds at closing.
Jeff Aronoff, representing bond counsel Miller Canfield, explained that the engagement letter describes the firm’s role as bond counsel and that the operative action is the notice of intent resolution. Aronoff discussed the legal framework and told council that, for capital-improvement bonds, state law (the Revised Municipal Finance Act, Act 34 of 2001) provides authorization and governs the relationship with the Michigan Department of Treasury. Aronoff said that under that state law framework, certain capital financing does not require a voter referendum even where the charter contains language about full-faith-and-credit bonds.
Council members pressed staff and counsel on several points: whether the library remained in the financing package (staff said the library was removed from the current notice), what the not-to-exceed amount covers, whether the bond would rely on the general fund or a dedicated revenue stream, and the expected timing of a formal bond issuance. Several council members requested preliminary debt‑service estimates for different term lengths so the council could assess long-term budget impact; staff said those detailed figures will be provided after bids are solicited and before final bond authorization.
The vote to approve Miller Canfield’s engagement and the notice of intent was moved by Mr. Rebello and seconded by Mr. Frederick; recorded outcome on the transcript was 5 in favor, 2 opposed.
Why it matters: The bonding step would allow the city to complete two municipal buildings—projects already underway using ARPA funds—without immediately drawing down other operating reserves. Council retained final authority over the exact bond amount, term and repayment plan. Councilmembers who opposed the notice said they wanted clearer estimates of long‑term debt service and preferred more precise numbers before authorizing a not-to-exceed amount.
What’s next: With the notice of intent approved, staff and bond counsel will solicit terms and proposals; final bond documents and the finance plan will return to council for approval before closing.
