Road revitalization bond notice of intent

At a glance

Based on auto-generated captions; names and details may be misheard.

What: Notice of intent to issue capital improvement bonds (general obligation, limited tax) of up to $70 million for underground sewer and water work tied to the road revitalization program.
Where it stands: Notice of intent approved by unanimous roll with immediate effect on 2026-10-20. It sets a ceiling only; it does not authorize issuing bonds.
Next: A separate bond authorization resolution will come to council.

Planned work runs 2027 through 2030; the bonds would be repaid from water and sewer system revenue.
The city's target is a 10-year bond. Bond counsel from Miller Canfield said Michigan allows up to 30 years and most cities use 20 to 25 for water and sewer bonds, so 10 years cuts interest cost.
Mayor Hammoud explained that state Act 51 road money cannot legally be used for underground utilities, so water and sewer bills usually fund that work. The plan is to bond now to fix the worst roads quickly: about 40 miles of roughly 300 miles of residential road, with a goal of no pothole-ridden residential streets by 2030.
Sareini said the city had been repairing about two miles a year while five to six miles a year were deteriorating, and that a ballot proposal had failed earlier.
The chief financial officer said the city previously worked with the same bond counsel on pension and capital bonds in 2017 and 2018.

About 7 minutes across 1 meeting (from transcript timestamps; approximate).

Meeting	Minutes
2026-10-20 - City Council	7

2026-10-20 - City Council — Notice of intent for bonds up to $70 million approved by unanimous roll; the chief financial officer, bond counsel and mayor presented.