Council approves use of bonds for Lansing sewer project

Published 7:43 am Wednesday, October 6, 2010

City Council voted Monday evening to proceed with the sale of over $2.8 million in general obligation utility revenue bonds that will finance the Lansing Township sewer system improvements.

Tom Dankert, director of administrative services, said the bonds are a way of paying back the city for the money it has spent toward the project.

The money generated from special assessments, which are paid for by residents affected by the project, will pay for the bonds. Bonds sales will begin Nov. 1 at 10:30 a.m. and the council will consider an award at 5:30 p.m. that evening.

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The bonds can be sold either as tax exempt bonds or taxable Build America Bonds. Build America Bonds were established under the American Recovery and Reinvestment Act to stimulate investment in capital projects and to keep city’s borrowing costs to a minimum.

City Council approved the sale of the bonds by a vote of 7-0.