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Romulus Authorizes Up to $10.5M in Refunding Bonds; Finance Team Estimates ~$400,000 Savings
Summary
The council authorized a tax resolution to issue 2025B/2025C refunding bonds (up to $10.5 million) to refinance prior series and cover issuance costs; bond counsel said the refunding could yield about $400,000 in savings for the city.
The Romulus City Council on Oct. 13 adopted a tax resolution authorizing issuance of refunding bonds labeled 2025B and 2025C, with authorization of up to $10,500,000 to refund prior series and cover issuance costs.
Pat McGowan, bond counsel with Miller Canfield, told council the resolution authorizes issuance of up to $10.5 million to pay off outstanding bonds and pay issuance costs associated with the transaction. McGowan said the resolution is structured to allow refinancing of one or both series (the series that financed roads tied to an Amazon project and the 2014 water and sewer bonds) provided the refinancing achieves at least 2% savings on debt service.
McGowan said interest rates have moved in the city’s favor since the council last considered similar refinancing in August, and that the extra authorization includes room for issuance costs and any discount. Administration told council that the transaction should yield savings “in the neighborhood of about $400,000.” Council voted unanimously to authorize the resolution.
What council approved is an authorization to proceed; final issuance, exact par amounts and the decision to refund one or both series will be determined by staff and bond counsel when market conditions and final pricing are available. Staff and counsel said they will return with final documents and any required notices when pricing is set.
