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File #: 2024-359    Version: 1 Name:
Type: Resolution Status: New Business
File created: 10/23/2024 In control: Board of Directors
On agenda: 11/21/2024 Final action:
Title: Resolution Authorizing Publication of Notice of Intent to Issue Sewage Disposal System Revenue Bonds
Sponsors: Nicolette Bateson
Indexes: Finance
Attachments: 1. 7B1 Notice of Intent to Issue Sewage Disposal System Revenue Bonds.pdf, 2. 7B3 Resolution Regarding Publication of Notice of Intent to Issue Bonds Sewer 2024.pdf

Title

Resolution Authorizing Publication of Notice of Intent to Issue Sewage Disposal System Revenue Bonds

Body

 

Agenda of:                      November 21, 2024

Item No.:                     2024-359

Amount:                     Not to Exceed $300,000,000                                                                                                                                                                                                                  

 

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 Sewage Disposal 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 Resolutions Authorizing Publication of Notices of Intent to Issue Sewage Disposal System Revenue Bonds in the amounts of not to exceed $300,000,000 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 Sewage Disposal 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

Attached to this memo is a proposed resolution authorizing the publication of a Notice of Intent to issue sewage disposal system revenue bonds in the amounts of not to exceed $300,000,000. 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 Notices of Intent to Issue Sewage Disposal System Revenue Bonds of not to exceed $300,000,000 million as presented.