South Lyon council unanimously authorizes second series of $18.465 million street-improvement bonds

The South Lyon City Council voted unanimously to authorize the second and final series of the voter-approved street-improvement bond, completing the issuance authorized by the August 2022 voter approval.

Bond counsel Patrick McGough said the resolution before the council authorizes issuance of the remaining proceeds under the $18,465,000 authorization voters approved in 2022. The city structured the program to be issued in two series; the first series was sold in 2023 and paid for an initial set of street projects. The second series will fund the next tranche of road improvements.

Financial advisor Steve Burke told council that market demand for the city's double-A-plus rated bonds is strong and that, if sold in the near term, interest rates for the maturity expected could be around 3 percent (higher than the 2.5 percent achieved in 2023). He said modeled millage to support the combined bond issues is now estimated in the 4.1–4.2 mills range rather than the originally projected approximately five mills because taxable value growth has lowered the necessary rate.

Council members asked how the millage will be adjusted after sale; bond counsel and the financial advisor explained that the unlimited-tax bond is structured to levy the millage necessary each year to meet debt service and that changes to taxable value and interest costs will change the annual levy as required by law.

The council moved, seconded and approved the resolution; deputy clerk Piper conducted a roll-call vote and recorded 'Yes' from all members present.