NOTICE OF INTENT TO ISSUE MUNICIPAL SECURITIES TO THE ELECTORS OF THE CITY OF EAST LANSING

PLEASE TAKE NOTICE that the City Council of the City of East Lansing (the “City”) intends to issue municipal securities in one or more series, in an amount of not to exceed $6,000,000 (the “Municipal Securities”).

The Municipal Securities shall be issued for the purpose of defraying the cost to design, acquire and construct certain capital improvements, including without limitation, improvements to the City’s Sewage Disposal System, including without limitation: (1.) the separation of combined sewers in the River Street, Waters Edge, Woodmere Street, Gunson Street, Milford Street, and Wilmarth Area, through the  conversion of existing combined sewers to either separate storm sewers or sanitary sewers and the construction of new complimentary storm sewers or sanitary sewers as appropriate, relocation of water mains as necessary, the reduction of sanitary sewer and combined sewer overflows to the Red Cedar River, stormwater quality improvements,  and the construction of a flow control structure; (2.) improvements to the Water Resource Recovery Facility (WRRF) administration and controls building, including without limitation, repurposing of building spaces occupied by obsolete and abandoned equipment previously used for incineration, solids storage, solids dewatering, and handling processes in order to construct staff offices,  a central control operations center, and laboratory improvements; provide ADA improvements; provide equitable facilities for female employees; utilization of excess heat from the combined heat and power unit to heat the administration building and galleries; and upgrading the laboratory and the sampling system; and (3.) improvements to the WRRF treatment system’s operations and controls, including without limitation, solids handling piping modifications and instrumentation improvements, improvements to the aeration tank instrumentation and controls, modifications to the WRRF effluent reaeration chamber, RAS headbox modifications, construction of a vactor dump station, and modifications to the equalization basin; as well as all work, equipment, and appurtenances necessary or incidental to these improvements and such other improvements to the Sewage Disposal System and other capital improvements as the City may determine to make and to pay the costs of issuance of municipal securities and capitalized interest, if any.

The Municipal Securities of this issue shall mature within the maximum terms permitted by law with interest on the unpaid balance at a rate not to exceed the maximum rate permitted by law to be determined upon the sale of the Municipal Securities.  The Municipal Securities shall be issued pursuant to Act 34, Public Acts of Michigan, 2001, as amended (“Act 34”).

SOURCE OF PAYMENT

The City intends to pay the principal of and interest on the Municipal Securities from available funds of the Sewage Disposal System. The principal of and interest on the Municipal Securities will be limited tax full faith and credit general obligations of the City, payable from any available funds of the City.  Pursuant to this pledge of its limited tax full faith and credit, in the event available funds of the City are not sufficient to pay the principal of and interest on the Municipal Securities, the City will be obligated to levy such ad valorem taxes upon all taxable property in the City as shall be necessary to make the payments of principal and interest on the Municipal Securities, which taxes, however, will be limited by applicable constitutional, statutory and charter limitations on the taxing power of the City.

RIGHT OF REFERENDUM

This notice is given, by order of the City Council of the City, to and for the benefit of the electors of the City in order to inform them of their right to petition for a referendum upon the question of the issuance of the Municipal Securities.  The Municipal Securities will be issued, without submitting such a question to a vote of the electors, unless within 45 days after the date of publication of this notice a petition requesting a referendum upon such question, signed by not less than 10% or 15,000 of the registered electors residing within the City, whichever is the lesser, shall have been filed with the City Clerk or other recording officer of the City.  In the event that such a petition is filed, the Municipal Securities will not be issued unless and until the issuance thereof shall have been approved by the vote of a majority of the electors of the City qualified to vote and voting thereon at a general or special election.

This Notice is published pursuant to the requirements of Section 517 of Act 34.

Amy Gordon, Interim Clerk

City of East Lansing

CP#25-119