Decatur council authorizes up to $53 million conduit bonds for Milliken University after debate; 6–0 with one recusal

The Decatur City Council voted to authorize the city to act as conduit issuer for revenue bonds for Milliken University on an ordinance that sets parameters for an issuance not to exceed $53,000,000. The measure passed after council debate and public comment, with six members voting yes and one recusal.

The authorization, introduced as an ordinance, allows the city to enter the municipal bond market on Milliken’s behalf so Milliken — a not‑for‑profit corporation — can refinance prior loans, fund campus improvements, establish a debt service reserve and cover issuance costs. City Manager Melissa Hahn told the council the city would serve only as a conduit and would be indemnified: "The city is not taking on the debt of these bonds being issued. We are just the conduit," she said.

Dean Prepenaux, identified in the record as president of Milliken University, told the council the university and its municipal advisor have been working with city staff on a plan of finance. "Milliken is Decatur's university and Decatur is Milliken's home," Prepenaux said, urging the council to consider the university's economic role. Jeff White, the municipal advisor, described why the city's home‑rule issuance authority is needed and emphasized that Milliken would be responsible for repayment: "These bonds will stand on the credit quality of the university itself, not on the credit quality of the city." He added that the $53 million cap is a parameter and Milliken does not expect to use the full authorized amount.

Councilman Cooper pushed for more time to review the nearly 400‑page packet and raised concerns that, despite indemnification, the city could still be named in litigation and incur legal costs. Cooper moved to table the ordinance to a later meeting; that motion failed on a 2–4 vote. After further discussion and assurances from university counsel and advisors that the documents provide for reimbursement of city legal costs and that parameters would require returning to council if exceeded, the council called the question and approved the ordinance.

Councilman Horn recused himself from the hearing and vote because he is a biology professor at Milliken University. The final procedural tally, as recorded by the clerk, was six ayes, one recusal.

Votes at a glance - Motion to table ordinance: motion by Councilman Cooper; seconded; failed 2 ayes, 4 nays (one recusal noted earlier). - Final ordinance vote (authorize conduit issuance up to $53,000,000): approved 6 ayes, 0 nays, 1 recusal (Councilman Horn).

Why it matters The conduit structure allows Milliken to access tax‑exempt municipal bond markets through the city without City of Decatur general obligation backing, which the university and its advisors said preserves city credit and avoids direct city liability while enabling investment in Milliken's campus and potential local economic effects. Council members insisted on clear public messaging to explain the city's limited financial role.

What’s next The ordinance establishes parameters for the issuance; Milliken and its underwriting team will proceed to market work and pricing under those limits. Council members and staff indicated they expect to return if proposed terms exceed the adopted parameters or if material changes are required.

Sources: City Council meeting and public hearing proceedings. Quotes are attributed to speakers in the council record: Melissa Hahn (City Manager), Dean Prepenaux (Milliken University president), Jeff White (municipal advisor), and Councilman Cooper.