Flushing City Council
Minutes
A Special Meeting of the Flushing City Council was called to order on Thursday, October 30, 2003 at 5:00 p.m. by Mayor Janice L. Gensel, followed by the Pledge of Allegiance to the Flag and invocation.
Present: John C. Gault
Janice L. Gensel
Jay E. Johnson
Raymond Peck
Teresa K. Salem
Michael T. Szukhent
Absent: Richard L. Bade
Others Present: Dennis J. Bow, City Manager
Nancy G. Parks, City Clerk/Treasurer
MEETING OPEN TO THE PUBLIC:
No public present.
City Hall/Police Station Financing – The City Council reviewed the attorney’s opinion. Attorney Henneke’s opinion on the installment purchase agreement for the City Hall/Police Station under Act 99 of the Public Acts 1933 is as follows:
1. The Obligation is a valid and binding Obligation of the City of Flushing and is authorized by the Charter of the City of Flushing, as well as the statutes of the State of Michigan, more particularly, Act 99 of the Public Acts 1933, known as compiled law 123.721, et. seq. Said statute provides that the City may enter into a contract for the purchase of real or personal property for public purposes to be paid for in installments over a period not to exceed fifteen (15) years nor the useful life of the property so acquired. Furthermore, the Flushing City Council may include in its budgets and pay a sum or sums as may be necessary each year to meet the payments of any installment with interest thereon as they become due. Furthermore, the City of Flushing has determined that the outstanding balance that will be due upon the installment purchase contract, exclusive of interest, does not exceed one and one-quarter (1¼%) percent of the taxable value of the real and personal property located within the City, as of the date of that installment purchase contract (as required by law).
Flushing City Council
Minutes
Page Two
2. The interest on the Obligation is excluded from gross income for federal income purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations. However, it should be noted that, for the purpose of computing the alternative minimum tax imposed on corporations (as defined for federal income tax purposes), such interest is taken into account in determining adjusted current earnings. We express no opinion regarding other federal tax consequences arising with respect to the Obligation.
3. The Obligation and interest thereon is exempt from all taxation provided by the laws of the State of Michigan except taxes on gains, realized from the sale, payment or other disposition of the Obligation.
The rights or remedies of the holder of the Obligation may be affected by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium, receivership or other similar laws effecting the enforceability of creditor’s rights now existing or hereafter enacted to the extent constitutionally applicable and the enforcement may be subject to the exercise of judicial discretion in appropriate cases.
The City received financing rates from three institutions; Dublin Capital, Fifth Third Bank and Bank One. The lowest rate received, per the City’s specifications, was from Bank One at 4.33% for the fifteen years.
City Hall/Police Station Financing – Motion by Gault, seconded by Szukhent, to approve the resolution presented incorporating the City attorney’s opinion regarding financing the City Hall and Police Station through Act 99 of the Public Acts 1933. Adoption of this resolution allows the City of Flushing to enter into a contract for the purchase of real or personal property for public purposes, to be paid for in installments over a period not to exceed fifteen (15) years and not to exceed the useful life of the property acquired.
Yea: Gault, Johnson, Peck, Salem, Szukhent, Gensel
Nay: None
Motion Carried.
Flushing City Council
Minutes
Page Three
Financing Institution – Motion by Szukhent, seconded by Gault, to accept Bank One’s proposal for the financing of a City Hall and Police Station at a fifteen-year installment period and interest rate of 4.33%.
Yea: Gault, Johnson, Peck, Salem, Szukhent, Gensel
Nay: None
Motion Carried.
Adjournment – Motion by Johnson, seconded by Szukhent, to adjourn.
Yea: Gault, Johnson, Peck, Salem, Szukhent, Gensel
Nay: None
Motion Carried.
Adjourn: 5:29 p.m.
_____________________________ ______________________________
Janice L. Gensel, Mayor Nancy G. Parks, City Clerk/Treasurer