NOTICE TO ELECTORS OF THE CITY OF OWOSSO
AND TO USERS OF THE CITY’S
WASTEWATER TREATMENT SYSTEM
OF INTENT TO ISSUE REVENUE BONDS
AND THE RIGHT OF REFERENDUM THEREON
PLEASE TAKE NOTICE that the City Council of the City of Owosso, County of Shiawassee, State of Michigan, intends to issue and sell revenue bonds pursuant to Act 94, Public Acts of Michigan, 1933, as amended, in an amount not to exceed Two Million One Hundred Forty-Five Thousand Dollars ($2,145,000) for the purpose of paying costs to acquire and construct improvements and repairs to the City's wastewater treatment plant including installation of new headworks screw pumps and motors, and grit chamber mechanical parts, together with any appurtenances and attachments and any related site improvements.
The Revenue Bonds may be issued in one or more series and may be combined with bonds issued for other purposes as shall be determined by the City Council. Each series of the Revenue Bonds will mature in annual installments not to exceed the maximum permitted by law, with interest on the unpaid balance from time to time remaining outstanding on said bonds to be payable at rates to be determined at sale of the Revenue Bonds but in no event to exceed such rates as may be permitted by law.
SOURCE OF PAYMENT OF REVENUE BONDS
THE PRINCIPAL OF AND INTEREST ON THE REVENUE BONDS SHALL BE PAYABLE solely from the revenues received by the City from the operations of the Wastewater Treatment System, except as provided below if the revenue bonds are sold to the Michigan Finance Authority. The revenues will consist of rates and charges billed to the users of the System, a schedule of which is available from the City’s Public Utilities Department. The rates and charges may from time to time be revised to provide sufficient revenues to provide for the expenses of operating and maintaining the System, to pay the principal of and interest on the revenue bonds and other obligations of the System, and to provide reserves for these purposes.
ADDITIONAL POTENTIAL SOURCES OF PAYMENTS
The City anticipates that it will sell the revenue bonds to the Michigan Finance Authority. The Michigan Finance Authority may require the City to pledge for the payment of the revenue bonds money received or to be received by the City derived from imposition of taxes by the State and returned to the City as provided by law, except for money the use of which is prohibited for such purposes by the State Constitution. The City may enter into an agreement providing for the payment to the Michigan Finance Authority or a trustee of taxes collected by the State and returned to the City, and such funds may be pledged for the payment of the revenue bonds.
RIGHT OF REFERENDUM
THE REVENUE BONDS WILL BE ISSUED WITHOUT A VOTE OF THE ELECTORS UNLESS A VALID PETITION REQUESTING SUCH A VOTE SIGNED BY NOT LESS THAN 10% OF THE REGISTERED ELECTORS RESIDING WITHIN THE BOUNDARIES 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 REVENUE BONDS MAY NOT BE ISSUED WITHOUT AN APPROVING VOTE OF A MAJORITY OF THE QUALIFIED ELECTORS RESIDING WITHIN THE BOUNDARIES OF THE CITY VOTING THEREON. If such petition is filed and the electors of the City voting thereon approve the issuance of the revenue bonds, then the bonds may be payable from revenues or from ad valorem taxes that may be levied on all taxable property in the City without limitation as to rate or amount.
THIS NOTICE is given pursuant to the requirements of Section 33, Act 94, Public Acts of Michigan, 1933, as amended.
Amy K. Kirkland, City Clerk
City of Owosso