Lake Orion – Notice to Taxpayers – Intent to issue Bonds

NOTICE TO TAXPAYERS AND

ELECTORS OF THE

VILLAGE OF LAKE ORION, COUNTY OF OAKLAND, STATE OF MICHIGAN

AND THE USERS OF SAID VILLAGE’S

WATER SUPPLY AND WASTEWATER

SYSTEM OF INTENT TO ISSUE BONDS

AND THE RIGHT OF REFERENDUM RELATING THERETO

PLEASE TAKE NOTICE that the Village of Lake Orion, County of Oakland, State of Michigan, intends to issue and sell revenue bonds, in one or more series, pursuant to Act 94, Public Acts of Michigan, 1933, as amended, in an aggregate amount not to exceed Ten Million Dollars ($10,000,000), for the purpose of paying the costs of improvements to the Village’s water supply system, including but not limited to, replacing approximately 34,100 feet of undersized 4 and 6-inch water main with 8-inch water main; replacing approximately 1,000 feet of undersized 6-inch water main with 12-inch water main; and replacing approximately 4,400 feet of 8-inch water main with 8-inch water main, together with all site work, necessary interests in land, rights-of-way, appurtenances and attachments thereto (the “Project”).

SOURCE OF PAYMENT OF REVENUE BONDS

THE PRINCIPAL OF AND INTEREST ON SAID REVENUE BONDS SHALL BE PAYABLE primarily from the revenues received by the Village from the operations of the Village’s water supply and wastewater system. The Village expects the revenue bonds to be sold to the Michigan Finance Authority in connection with the Michigan Department of Environmental Quality Drinking Water Revolving Fund program in which case the bonds sold to Michigan Finance Authority may also be payable as described below. Said revenues will consist of rates and charges that 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 said bonds and other bonds payable from revenues of the system, and to pay other obligations of the system.

BOND DETAILS

SAID BONDS may be issued in one or more series, each of which will be payable in annual installments not to exceed thirty (30) in number and will bear interest at the rate or rates to be determined at the time of sale to the Michigan Finance Authority but in no event to exceed the maximum rate permitted by law.

ADDITIONAL SOURCES OF PAYMENTS FOR BONDS

SOLD TO MICHIGAN FINANCE AUTHORITY

BECAUSE THE REVENUE BONDS WILL BE SOLD TO THE MICHIGAN FINANCE AUTHORITY, THE VILLAGE MAY ALSO PLEDGE ITS LIMITED TAX FULL FAITH AND CREDIT AS SECURITY FOR THE BONDS. IN SUCH CASE, IF REVENUES OF THE SYSTEM ARE INSUFFICIENT TO PAY DEBT SERVICE AT ANY TIME, THEN TO PAY DEBT SERVICE THE VILLAGE SHALL ADVANCE LEGALLY AVAILABLE FUNDS INCLUDING, IF NECESSARY, FUNDS FROM THE LEVY OF TAXES UPON ALL TAXABLE PROPERTY IN THE VILLAGE, SUBJECT HOWEVER TO CONSTITUTIONAL AND STATUTORY TAX RATE LIMITATIONS. IN ADDITION THE VILLAGE MAY BE REQUIRED TO PLEDGE FOR THE PAYMENT OF THE BONDS SOLD TO THE MICHIGAN FINANCE AUTHORITY MONEY RECEIVED OR TO BE RECEIVED BY THE VILLAGE DERIVED FROM IMPOSITION OF TAXES BY THE STATE AND RETURNED OR TO BE RETURNED TO THE VILLAGE AS PROVIDED BY LAW, except for money the use of which is prohibited for such purposes by the State Constitution. The Village may enter into an agreement providing for the payment of taxes, which taxes are collected by the State and returned to the Village as provided by law, to the Michigan Finance Authority or a trustee, and such funds may be pledged for the payment of the bonds.

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 VILLAGE IS FILED WITH THE VILLAGE 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 VILLAGE VOTING THEREON.

THIS NOTICE is given pursuant to the requirements of Section 33, Act 94, Public Acts of Michigan, 1933, as amended.

Susan C. Galeczka, CMC CMMC

Village Clerk, Village of Lake Orion

Published in the Lake Orion Review – 12/20/2017

 

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