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Commission approves notice of intent to publish for up to $22 million in capital improvement bonds
Summary
The commission authorized publication of a notice of intent to issue capital improvement bonds not to exceed $22,000,000, the procedural first step that gives electors a referendum right; staff emphasized that publication alone does not authorize any bond issuance.
The Mount Clemens City Commission voted to approve a notice-of-intent resolution to publish the city's intent to issue capital improvement bonds not to exceed $22,000,000. City bond counsel and staff stressed that the action in front of the commission is a publication step required by the Revised Municipal Finance Act and that publication alone does not authorize bonds.
The notice says the city may issue up to $22 million to finance a range of capital projects — including city-building projects and water/sewer projects — and to reimburse the city for preliminary engineering and issuance costs. Staff noted the advertised amount can be reduced at the time bonds are authorized; to increase the total later would require republishing a new notice.
Bond counsel explained the practical intent of the publication: it starts the statutory process and gives electors a right to petition for a referendum if they object to the issuance. "The resolution in front of you really does just one thing: it authorizes the publication of the notice of intent," the bond representative said. The commission approved the publication and asked staff to prepare a consolidated summary of the city's total outstanding obligations for future review.
What's next: Staff will arrange publication of the notice and prepare a summary of current debt obligations and fund assignments for the commission to review during the budget/audit process.
