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Burton council approves notice to seek up to $685,000 in certificates to help fund Water Well #5
Summary
Burton’s council voted to approve publication of notice to issue combination tax and surplus revenue certificates of obligation (up to $685,000) to help close a funding gap for Water Well #5 after project costs rose to about $1.2 million; bond counsel explained the process and the motion passed unanimously.
Mayor Karen Buck and the Burton City Council on Dec. 10 approved a resolution to publish notice of the city's intent to issue combination tax and surplus revenue certificates of obligation in an aggregate principal amount not to exceed $685,000 to support Water Well #5 and related water-system upgrades.
The vote followed an explanation from bond counsel Gregory Miller about the certificate-of-obligation process and a presentation from City Secretary Angela Harrington on the project’s funding history. Harrington summarized the grant timeline and funding gap: the city applied in April 2023 with a budget justification of $609,500 and was later formally awarded $593,800, but "actual costs for the project was determined in September of 2024 to be $1.2 million," creating a shortfall the certificates are intended to help cover. Harrington told the council that "the GLO grant funds will cover roughly half of the costs to give the City a second well."
The notice the council authorized for publication says the certificates would be payable from an annual ad valorem tax within legal limits and from surplus revenues of the city’s Waterworks and Sewer System. The resolution and attached notice include additional financing details: the city listed current combined outstanding principal and interest at $255,825, a maximum principal amount for the new certificates of $685,000, and an estimated combined principal and interest on the new certificates of approximately $858,386.
Councilmember Paul McLaughlin moved to approve publication of the notice; Councilmember Jeff Eckhardt seconded the motion, which passed with no recorded opposition. Bond counsel and city staff told council to expect overlap in outstanding obligations (the city’s 2016 General Obligation Refunding Bonds are scheduled to be paid off in September 2027) and said staff believe current revenue collections can support the additional debt service. The notice requires publication once a week for two consecutive weeks and posting on the city website at least 45 days prior to the tentative ordinance date.
