NOTICE OF INTENT TO EXECUTE
TAX-SUPPORTED CONTRACT AND OF RIGHT TO
PETITION FOR REFERENDUM THEREON
TO THE TAXPAYERS AND ELECTORS OF
THE CITY OF YPSILANTI,
WASHTENAW COUNTY, MICHIGAN:
PLEASE TAKE NOTICE, the City of Ypsilanti (the “City”) has approved by resolution the execution of a contract (the “Contract”) with the Ypsilanti Community Utilities Authority (the “Authority”) and the Charter Township of Ypsilanti (the “Township”) pursuant to Act No. 233, Public Acts of Michigan, 1955, as amended, which Contract provides, among other things, that the Authority will acquire, construct and install certain improvements to the wastewater treatment plant, including improvements to the plant’s ultraviolet disinfection system, headworks odor control system and influent well, together with all necessary appurtenances and attachments thereto to service the City and the Township and will issue its bonds in the principal amount not to exceed $11,500,000 to finance the cost of the acquisition and construction of such wastewater improvements for the City and the Township AND THE CITY WILL PAY TO THE AUTHORITY PURSUANT TO THE CONTRACT THE SUMS NECESSARY TO RETIRE ITS PERCENTAGE SHARE OF THE PRINCIPAL OF AND INTEREST ON SAID BONDS.
CITY’S CONTRACT OBLIGATIONS
It is presently contemplated that the bonds will be in the principal amount of not to exceed $11,500,000, of which the City’s “Local Unit Share” (as that term is defined in the Contract and is based on the City’s annual usage of the wastewater system) is initially 24.23%, subject to adjustment annually, will mature serially over a period of not to exceed thirty-five (35) years, 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 two and one-eighths percent (2.125%) per annum on the balance of the bonds from time to time remaining unpaid. The Contract includes the City’s pledge of its limited tax full faith and credit for the prompt and timely payment of the City’s obligations as expressed in the Contract. THE CITY WILL BE REQUIRED TO LEVY AD VALOREM TAXES WITHIN APPLICABLE CONSTITUTIONAL, STATUTORY AND CHARTER TAX LIMITATIONS ON ALL TAXABLE PROPERTY WITHIN THE CITY TO THE EXTENT NECESSARY TO MAKE THE PAYMENTS REQUIRED TO PAY ITS SHARE OF THE PRINCIPAL OF AND INTEREST ON THE BONDS IF OTHER FUNDS FOR THAT PURPOSE ARE NOT AVAILABLE. IT IS THE PRESENT INTENT OF THE CITY TO USE THE REVENUES FROM THE CITY DIVISION OF THE AUTHORITY’S SYSTEM TO MAKE THE PAYMENTS REQUIRED TO PAY PRINCIPAL OF AND INTEREST ON THE BONDS.
RIGHT OF REFERENDUM
The Contract will become effective and binding upon the City without vote of the electors as permitted by law unless a petition requesting an election on the question of the City entering into the Contract, 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 Contract cannot become effective without an approving vote of a majority of electors of the City qualified to vote and voting on the question. The Contract is on file at the office of the City Clerk.
This notice is given pursuant to the requirements of Section 8 of Act No. 233, Public Acts of Michigan, 1955, as amended. Further information concerning the details of the Contract and the matters set out in this notice may be secured from the City Clerk’s office.
Clerk, City of Ypsilanti