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Mount Clemens commission approves bond refunding, lot sale, moratorium extension and modest election-pay increases
Summary
The commission authorized a general-obligation refunding of 2003 parking bonds expected to yield about $150,000 net-present-value savings, approved the sale of two vacant lots, extended a medical-marijuana moratorium 180 days, raised election-worker pay slightly and approved routine invoices and the consent agenda.
The Mount Clemens City Commission approved several routine and financial items during its meeting, including a resolution authorizing issuance of general obligation limited-tax refunding bonds intended to refund parking-improvement bonds issued in 2003.
City administration told the commission the refunding would not extend the bonds' original maturity date (07/01/2023) and, based on preliminary market assumptions, could yield net-present-value savings of roughly $150,000 over the remaining life of the obligation. Bond-placement adviser Mike Ormele estimated annual net savings of about $20,000 to $25,000 under a roughly 2.5% market rate scenario; bond counsel Jeff Aronoff explained the city is likely to place the refinancing with a bank and could decline to proceed if market conditions do not produce adequate savings.
The commission also approved the sale of two city-owned vacant parcels at 10110 and 1110 Orchard Street to William Hollister for $2,500; Hollister told the commission he intends to clean and landscape the lots and pay taxes. The commission adopted, by roll-call vote, an extension of the November 2, 2015 moratorium on the establishment of medical-marijuana businesses for an additional 180 days while state legislation and local regulatory options are reviewed.
On election administration, the commission approved a small increase in compensation for election inspectors from $1.25 to $1.40 per day and for election chairpersons from $1.50 to $1.75 per day effective July 1, 2016; administration noted the city is reimbursed by the state for election-worker pay in state and federal elections. The commission moved to approve purchases and invoices as presented (including acceptance of a low bid for a fire department floor replacement) and approved the consent agenda.
Why it matters: The bond refunding is intended to lower debt-service costs on the cityparking fund and free limited funds for other parking-system improvements; the moratorium extension preserves local review time while state-level licensing proposals are pending; the modest election-pay increase is intended to improve recruitment of qualified precinct workers.
What the votes were: Each item was adopted by roll-call as recorded in the meeting minutes. The refunding resolution, the lot sale, the moratorium extension, the election-worker pay increase, and the purchases/invoices were all approved by the commission during the meeting. Commissioners and staff said administration will proceed only if market conditions and projected savings meet the thresholds described in the resolution; otherwise the city can decline to issue the new bonds.
