Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department recommends adoption of the “Resolution Relating To Issuance By The Great Lakes Water Authority Of Sewage Disposal System Revenue Bonds For The Benefit Of The Detroit Local Sewage Supply System,” and also authorizes the Chief Financial Officer and the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of August 15, 2018
Item No. 18-0193
Resolution Relating to the Issuance by Great Lakes Water Authority of Sewage Disposal System Revenue Bonds for the Benefit of the Detroit Local Sewage System
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Thomas Naughton, Chief Financial Officer
Water and Sewerage Department
RE: Adoption of Resolution Relating to the Issuance by the Great Lakes Water
Authority of Sewage Disposal System Revenue Bonds for the Benefit of the
Detroit Local Sewage System
MOTION
Upon recommendation of Thomas Naughton, Chief Financial Officer, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department recommends adoption of the “Resolution Relating To Issuance By The Great Lakes Water Authority Of Sewage Disposal System Revenue Bonds For The Benefit Of The Detroit Local Sewage Supply System,” and also authorizes the Chief Financial Officer and the Director to take such other action as may be necessary to accomplish the intent of this vote.
JUSTIFICATION
The Detroit Water and Sewerage Department will utilize the proceeds of the Bonds to finance improvements to the City’s Local Sewage Disposal System in accordance with the Capital Improvement Plan. Anticipated borrowings are not to exceed $100 million.
BACKGROUND
The Detroit Water and Sewerage Department has requested the Great Lakes Water Authority to authorize the issuance and sale of its Sewage Disposal System Revenue Bonds. In conjunction with spending on capital projects, DWSD is allowed to reimburse itself certain expenses incurred 60 days prior to the adoption of a reimbursement resolution. DWSD will use these borrowings to fund anticipated sewer capital expenditures in Fiscal Year 2019 and 2020.