Revote on bond issuance due to court ruling

October 9, 2020

Bloomfield Township trustees scrambled to revote with a quorum present and approve the reissue of two general obligation bonds on Wednesday, October 7, due to a Michigan Supreme Court ruling which stated the governor lacked authority to issue or renew executive orders since April 30, which could have called into question virtual votes.

Township bond counsel Laura Basset, with Dickinson Wright PLLC, said that there were uncertainties with the Open Meetings Act relative to the issuance of bonds. “We have asked to make sure there is no question,” she said, regarding the revote, which took place a half-hour before the first bond was set to begin pricing.

Trustees originally unanimously approved two resolutions on September 14, allowing for two series of general obligation limited tax bonds, which had been issued when interest rates were higher, to be refunded and reissued at a substantially lower rate. The previous bonds had been issued in 2011.

When the bonds were originally issued the 2011, the bonds had an interest rate that ranged from 4  percent to 4.5 percent, while the 2013 bonds had interest rates ranging from two to three percent, going out to 2030 and 2032, respectively.

At the September 14 meeting, Lou Orcutt of Huntington Capital Markets said that those bonds in today’s market would have an interest rate just shy of 1.4 percent, and felt confident rates would stay where they currently are, putting the township well within the range to pursue a refunding of this size.

“I think you’d be pressed to find lower interest rates,” he said. “It’s producing some great savings. It’s well within all the perimeters.”

At the October 7 meeting, treasurer Brian Kepes said, “We have an opportunity to save an extra $100,000 over what we approved before.”

The board voted 7-0 on both bond issuances, with supervisor Leo Savoie, Kepes, clerk Jan Roncelli and trustee Neal Barnett voting in person to achieve a quorum.

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