Michigan

Michigan will allow local governments struggling with debt to refinance it at a net present-value loss under a new law passed by legislators and signed by outgoing Gov. Jennifer Granholm last week.

A Wayne County Circuit Court judge will rule in January on the latest legal wrangle that is part of a larger, years-long dispute over dueling plans for a new bridge serving the busy trade route between Detroit and Canada.

The Lansing Board of Water and Light, which provides electric service to 97,000 customers in Lansing, Lansing Township, and Delta Township, plans to issue about $250 million of tax-exempt bonds to finance construction of a new $182 million electric and steam-generating plant.

Moody's Investor's Service has downgraded $4.6 billion of Detroit sewer and water system revenue bonds citing a decline in debt service coverage, looming capital needs, and the risks associated with derivatives.

Detroit Mayor Dave Bing said the city early next year will begin offering residents "non-financial" incentives to relocate to certain areas under a plan to shrink its boundaries.

CHICAGO — Pre-subsidy interest rates ranged from 5.1% to 8.4% on $100 million of recovery zone economic development bonds that Detroit sold last week through a Michigan conduit.

CHICAGO — Fitch Ratings and Moody’s Investors Service hit Wayne County, Mich., with dual downgrades to the low single-A category last week as it prepares to sell $200 million of recovery zone economic development bonds Wednesday.

The junk-rated city of Detroit will access the market through a Michigan conduit Thursday as it seeks to raise $100 million to finance a new police headquarters in a vacant MGM casino.

Gov. Jennifer Granholm next week is expected to sign into law a $383 million capital budget that would fund dozens of projects at universities and community colleges across Michigan.

CHICAGO — Officials in Hamtramck met with the current and incoming state treasurers this week to continue to press their case for the cash-strapped city to become the first Michigan municipality to file for Chapter 9 bankruptcy.

CHICAGO — Michigan Republican Governor-elect Rick Snyder has tapped Utah’s top budget official as his new budget director, starting Jan. 1.

CHICAGO — The Wayne County Airport Authority will begin refunding more than $1 billion of senior-lien general airport revenue bonds Monday to achieve interest-rate savings and take advantage of the federal alternative-minimum tax holiday.

CHICAGO — Officials in Hamtramck, Mich., said they would try to set up a meeting with state Treasurer Robert Kleine in a fresh effort to win permission to file for bankruptcy.

CHICAGO — Officials in Hamtramck, Mich., said they would try to set up a meeting with state Treasurer Robert Kleine in a fresh effort to win permission to file for bankruptcy.

CHICAGO — Michigan officials Wednesday said they denied a request by the Detroit suburb of Hamtramck for permission to file for bankruptcy.

CHICAGO — A Detroit legislator was poised Wednesday to sponsor a package of bills that would allow Michigan to securitize up to $400 million of its tobacco settlement payments to erase the deficits carried by Detroit Public Schools and 41 other state school districts.

CHICAGO — The board of the Detroit Medical Center voted to extend the deadline for its $1.5 billion acquisition by a for-profit Tennessee health care company to Dec. 31, saying the parties were still waiting for state regulatory approvals.

CHICAGO — Midwestern voters next week go to the polls to decide the fate of $2.16 billion worth of borrowing requests, choose new governors, and decide spending and taxing measures.

CHICAGO — The triple-A rated University of Michigan Wednesday will sell $220 million of general revenue bonds to finance part of its 10-year, $5.5 billion capital plan.

CHICAGO — Michigan will hit the market Wednesday with $1.1 billion of short-term general obligation notes in what has become the state’s annual borrowing to cover expenditures while it awaits tax revenues.