Title
Resolution Authorizing Publication of Notice of Intent to Issue Water Supply System Revenue Bonds
Body
Agenda of: November 21, 2024
Item No.: 2024-355
Amount: Not to Exceed $400,000,000
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: November 21, 2024
RE: Resolution Authorizing Publication of Notice of Intent to Issue Water Supply System Revenue Bonds
MOTION
Upon recommendation of Nicolette N. Bateson, Chief Financial Officer & Treasurer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), approve the Resolution Authorizing Publication of Notices of Intent to Issue Water Supply System Revenue Bonds in the amount not to exceed $400,000,000 as presented, and authorizes the Chief Executive Officer to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA is presently preparing for future bond transactions and state revolving fund loan programs. This process begins with the publication of the Notices of Intent (NOI) to Issue Water Supply System Revenue Bonds. The NOI is required pursuant to Section 33 of Public Act 94 of 1933 to begin the 45-day referendum period. “If within 45 days after the publication of the [applicable] notice a petition, signed by not less than 10% or 15,000 of the registered electors, whichever is less, residing within the limits of the borrower, is filed with the clerk, or other recording officer, of the borrower, requesting a referendum upon the question of the issuance of the bonds, then the bonds shall not be issued until approved by the vote of a majority of the electors of the borrower qualified to vote and voting on the bonds at a general or special election.” If the 45-day referendum period expires without a petition requesting a referendum, then the Authority may authorize and issue such bonds in one or more series.
JUSTIFICATION
Included with this memo is a proposed resolution authorizing the publication of a Notice of Intent to issue water supply system revenue bonds in the amounts of not to exceed $400,000,000. This authorization would provide for continued funding for improvements to the systems that includes:
1. Supporting financing for GLWA and DWSD projects through subsidized State and federal funding programs such as the State Revolving Fund and Water Infrastructure Finance and Innovation Act (WIFIA) Loan Program; and
2. Supporting financing for GLWA and DWSD projects through revenue bonds sold as public offerings.
BUDGET IMPACT
No budget impact from the Notices of Intent. The budget impact will be determined at the time debt is issued.
COMMITTEE REVIEW
This matter was reviewed by the GLWA Audit Committee at its meeting on October 25, 2024. The Audit Committee unanimously recommended the Board of Directors approve the resolution authorizing publication of a Notice of Intent to Issue Water Supply System Revenue Bonds not to exceed $400,000,000 as presented.