SPECIAL
COUNCIL PROCEEDINGS
MARCH 1,
2007
A special meeting of
the Menominee City Council, City of Menominee, County of Menominee, State of
Michigan, was held Thursday, March 1, 2007at 8:30 a.m. in the Municipal Complex
Council Chambers.
Deputy Mayor Donald
Mick called the meeting to order and led the pledge of allegiance to the flag.
PRESENT: Council Members Fernstrum, Hudon, Jasper, Mick,
Pintarelli, and Sorensen
ABSENT: Mayor Krah; Council Members Organ and Schloegel;
Mayor Krah (all excused)
PRESENT: 6 ABSENT: 3
A motion was made by
Council Member Jasper and seconded by Council Member Hudon to excuse Mayor Krah
and Council Members Organ and Schloegel from the meeting. This motion was carried unanimously.
Deputy Mayor Mick opened the special meeting
that he called for the purpose of considering the following agenda:
1)
Pledge
of allegiance to the flag.
2)
Public
comment.
3) Notice of Intent to Issue Bonds Resolution.
4) Adjourn.
PUBLIC COMMENT:
Deputy Mayor Mick opened
the public comment session that was called for the purpose of hearing citizen
comments.
No one was heard.
A motion was made by
Council Member Fernstrum and seconded by Council Member Jasper to close the public comment
session. This motion was carried
unanimously.
The
following resolution was considered next:
NOTICE OF INTENT RESOLUTION
GENERAL OBLIGATION CAPITAL IMPROVEMENT BONDS
WHEREAS, the City
intends to issue and sell general obligation capital improvement bonds, pursuant
to Act 34, Public Acts of Michigan, 2001, as amended, in an amount not to
exceed Three Million Dollars ($3,000,000) for the purpose of paying all or part
of the cost of acquiring and constructing certain capital improvement items
consisting of water system improvements, sanitary sewer system improvements,
and street improvements in the City (the “Project”); and
Special Council
Proceedings
March 1, 2007
Page Two
WHEREAS, a notice of
intent to issue bonds must be published before the issuance of the aforesaid
bonds in order to comply with the requirements of Section 517 of Act 34, Public
Acts of Michigan, 2001, as amended; and
WHEREAS, the City
intends at this time to state its intentions to be reimbursed from proceeds of
the bonds for any expenditures undertaken by the City for the Project prior to
issuance of the bonds.
NOW, THEREFORE, BE IT
RESOLVED THAT:
1.
The City Clerk is hereby authorized and
directed to publish a notice of intent to issue bonds in a newspaper of general
circulation in the City.
2.
Said notice of intent shall be published
as a one-quarter (1/4) page display advertisement in substantially the
following form:
NOTICE
TO ELECTORS
OF
THE CITY OF
OF
INTENT TO ISSUE BONDS SECURED BY THE TAXING
POWER
OF THE CITY AND THE RIGHT OF REFERENDUM THEREON
PLEASE TAKE NOTICE
that the City Council of the City of Menominee, Menominee County, Michigan,
intends to issue and sell general obligation capital improvement bonds,
pursuant to Act 34, Public Acts of Michigan, 2001, as amended, in an amount not
to exceed Three Million Dollars ($3,000,000) for the purpose of paying all or
part of the cost of acquiring and constructing water system improvements,
sanitary sewer system improvements, and street improvements in the City.
Said bonds will mature
in annual installments not to exceed thirty (30) in number, with interest rates
to be determined at sale but in no event to exceed such rates as may be
permitted by law on the unpaid balance from time to time remaining outstanding
on said bonds. The bonds may be issued
in one or more series as shall be determined by the City Council.
SOURCE
OF PAYMENT OF BONDS
THE PRINCIPAL OF AND
INTEREST ON THE BONDS shall be payable from the general funds of the City
lawfully available for such purposes including property taxes levied within
applicable charter, statutory and constitutional limitations.
RIGHT
OF REFERENDUM
THE BONDS WILL BE
ISSUED WITHOUT A VOTE OF THE ELECTORS UNLESS A PETITION REQUESTING SUCH A VOTE
SIGNED BY NOT LESS THAN 10% OF THE REGISTERED ELECTORS OF THE CITY IS FILED
WITH THE CITY CLERK WITHIN FORTY-FIVE (45) DAYS AFTER PUBLICATION OF THIS
NOTICE. IF SUCH PETITION IS FILED, THE
BONDS MAY NOT BE ISSUED WITHOUT AN APPROVING VOTE OF A MAJORITY OF THE QUALIFIED
ELECTORS OF THE CITY VOTING THEREON.
Special Council
Proceedings
March 1, 2007
Page Three
THIS NOTICE is given
pursuant to the requirements of Section 517, Act 34, Public Acts of Michigan,
2001, as amended.
Thomas
DeNike
Clerk,
City of
3.
The City Council does hereby determine
that the foregoing form of Notice of Intent to Issue Bonds and the manner of
publication directed is the method best calculated to give notice to the City’s
taxpayers and electors of this Council’s intent to issue the bonds, the purpose
of the bonds, the security for the bonds, and the right of referendum relating
thereto.
4.
The City makes the following declarations
for the purpose of complying with the reimbursement rules of Treas. Reg. §
1.150-2 pursuant to the Internal Revenue Code of 1986, as amended:
(a) As
of the date hereof, the City reasonably expects to reimburse the City for the
expenditures described in (b) below with the proceeds of debt to be incurred by
the City.
(b) The
expenditures described in paragraph (b) are for the costs of acquiring and
constructing the Project which were or will be paid subsequent to sixty (60)
days prior to the date hereof.
(c) The
maximum principal amount of debt expected to be issued for the Project,
including issuance costs, does not exceed $3,000,000.
(d) A
reimbursement allocation of the expenditures described in (b) above with the
proceeds of the borrowing described herein will occur not later than 18 months
after the later of (i) the date on which the expenditure is paid, or (ii) the
date the Project is placed in service or abandoned, but in no event more than
three (3) years after the original expenditure is paid. A reimbursement allocation is an allocation
in writing that evidences the City’s use of the proceeds of the debt to be
issued for the Project to reimburse the City for a capital expenditure made
pursuant to this resolution.
(e) The
expenditures described in (b) above are “capital expenditures” as defined in
Treas. Reg. § 1.150-1(b), which are any costs of a type which are properly chargeable
to a capital account (or would be so chargeable with a proper election or with
the application of the definition of placed in service under Treas. Reg. §
1.150-2(c)) under general Federal income tax principles (as determined at the
time the expenditure is paid).
(f) No
proceeds of the borrowing paid to the City in reimbursement pursuant to this
resolution will be used in a manner described in Treas. Reg. § 1.150-2(h) with
respect to abusive uses of such proceeds, including, but not limited to, using
funds corresponding to the proceeds of the borrowing in a manner that results
in the creation of replacement proceeds (within Treas. Reg. § 1.148-1) within
one year of the reimbursement allocation described in (d) above.
5. All
resolutions and parts of resolutions insofar as they conflict with the
provisions of this resolution be and the same hereby are rescinded.
Special Council Proceedings
March 1, 2007
Page Four
A
motion was made by Council Member Sorensen and seconded by Council Member Hudon
to adopt the foregoing resolution. This
motion was carried unanimously.
ADJOURN:
A
motion was made by Council Member Fernstrum and seconded by Council Member Sorensen
to adjourn the meeting. This motion was
carried unanimously.
Thomas
F. DeNike, City Clerk/Treasurer
/skj