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Financial health team declines new MSU impact study; examines $15M bond scenario for parks, Hannah upgrades
Summary
The committee voted to halt a new Michigan State University fiscal‑impact study after staff reported widely varying bids; members also reviewed the city’s $156M stated debt capacity and a proposed bond package to fund facilities including the Hannah Center.
After reviewing outreach results and cost estimates for an updated Michigan State University fiscal‑impact study, Financial Health Team members voted by voice to not commission a new study at this time.
Staff said firms returned a wide range of prices to update the earlier 2017 analysis — roughly $30,000 to $100,000 — and several firms declined to bid. Following discussion about value and timing, a motion to not proceed with a new MSU study was made and approved by voice vote; the transcript records the voice vote but does not provide a roll‑call tally.
Debt and bonding: Separately, staff presented FY25 audit‑based debt capacity figures and worked through a sample bond scenario to fund multiple capital items including Hannah Community Center improvements, an aquatic center parking resurfacing and other projects. The presentation cited a nominal available capacity figure of about $156 million (statutory 10% of state equalized value is the controlling rule for debt limits) and showed illustrative amortizations for a $15M bond over 20 years (annual debt service roughly in the low‑to‑mid hundreds of thousands, varying by amortization and included projects). Committee members asked whether a bond would be placed on the ballot and whether the debt service millage would be dedicated; staff said those are decisions for council and that more granular funding and millage options will be developed.
Other budget items: The team reviewed pension contribution schedules and discussed whether borrowing to reduce unfunded liability could produce cash‑flow advantages; staff said further analysis is required. Members also asked the city attorney to brief the committee about the legal steps and consequences for forming special authorities (fire, parks) and for exploring dedicated revenue options (ticket surcharges, targeted millages).
What happens next: Committee members asked for clearer bond packaging and a millage/methodology briefing prior to any council action, and staff will supply additional detail on debt service estimates and the MSU study vendor responses upon request.
