Comprehensive Financial Plan - Pension Bonds Information
Comprehensive Financial Plan - March 6, 2018
This Comprehensive Financial Plan (the “Plan”) is being prepared pursuant to Act 329, Public Acts of Michigan, 2012, as amended (“Act 329”). In accordance with Act 329, the City of Clawson (the “City”) has chosen to issue bonds to finance a portion of the City’s unfunded pension liability, as further described in this Plan.
The City proposes to issue bonds in the amount of approximately $15,200,000 to fund its pension obligation, which is within the City’s legal debt capacity. It should be noted that only $1,030,000 of the City’s outstanding debt is General Obligation Limited Tax debt that does not have a specific revenue stream or dedicated millage supporting it. The remaining debt is paid from a dedicted millages or water and sewer charges.
Further informationregarding the City’s capacity to issue the OPEBs is shown in the following table.