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NOTICE OF INTENT TO ISSUE SANITARY SEWER SYSTEM REVENUE BONDS AND CAPITAL IMPROVEMENT BONDS TO THE ELECTORS OF THE CITY OF ALMA PLEASE TAKE NOTICE that the City of Alma (the “City”) intends to issue (a) one or more series of revenue bonds to finance a portion of the cost of the Improvements (defined below) in an aggregate amount not to exceed $40,000,000 (the “Revenue Bonds”) and (b) one or more series of capital improvement bonds pursuant to Act 34 to finance a portion of the cost of the Improvements in an aggregate amount not to exceed $14,000,000 (the “Capital Improvement Bonds” and together with the Revenue Bonds, the “Bonds”) The Bonds shall be issued to pay the cost to design, purchase, acquire, construct and install improvements to the City’s Sanitary Sewer System (the “System”), including without limitation: (i) the design, acquisition, construction and installation of mechanical screens with compactors and bypass channels, vortex grit tanks, grit pumps and grit classifiers, influent pumps including wet wells, secondary clarifier structures and mechanisms, tertiary filters, associated piping and electrical improvements, and electrical and SCADA upgrades and improvements; (ii) the design, acquisition, construction and installation of modifications to biological treatment process structures, facilities, components and equipment including, without limitation, new diffusers, mixing equipment, and instrumentation in treatment process tanks, and associated piping and electrical improvements; (iii) the decommissioning of an existing polishing pond and related structures, facilities and equipment; (iv) the design, acquisition, construction and installation and new System buildings, structures, facilities, and equipment, including abandonment, renovation, decommissioning, and demolition of existing System buildings, structures, facilities, and equipment; (v) all work, equipment, and appurtenances necessary or incidental to these improvements; and (vi) such other capital improvements for the System or otherwise as the City shall determine to make (the “Improvements”) and to pay the costs of issuing the Bonds, finance reserves, and capitalized interest, if any. The Bonds 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 payable over not more than 40 years from the date of issuance of the Bonds. The Revenue Bonds shall be issued pursuant to Act 94, Public Acts of Michigan, 1933, as amended (Act 94”), and the Capital Improvement Bonds shall be issued pursuant to Act 34, Public Acts of Michigan, 2001, as amended (“Act 34”) and ordinances or resolutions of the City Commission, as applicable. SOURCE OF PAYMENT Bonds issued as Revenue Bonds under and pursuant to Act 94 will be payable from the net revenues of the System and any improvements, enlargements, and extensions thereto, and a statutory lien on said revenues will be established by said resolution. The City will covenant and agree to fix and maintain at all times while any of the bonds shall be outstanding such rates for service furnished by the System as shall be sufficient to provide for payment of the necessary expenses of operation, maintenance, and administration of the System and of the principal of and interest on the bonds when due and to provide for such other expenditures and funds for the System as are required by the resolution authorizing the issuance of bonds. In addition, the bonds may be secured by the full faith and credit of the City as limited by applicable constitutional, statutory, and charter limitations on the taxing power of the City and any other lawfully available monies of the City. Bonds issued as Capital Improvement Bonds under and pursuant to the provisions of Act 34 will be secured by the City’s pledge of its full faith and credit to pay the principal of and interest on the bonds as the same shall become due. The City will be obligated, as a first budget obligation, to advance moneys from its general funds or to levy ad valorem taxes on all taxable property within its corporate boundaries to pay the principal of and interest on bonds issued as capital improvement bonds as the same shall become due to the extent that other funds are not available for such purpose; provided, however, that the ability of the City to raise such moneys is subject to applicable constitutional, statutory, and charter limitations on the taxing power of the City. Sources of repayment of the principal of and interest on the bonds may include any other lawfully available monies of the City. RIGHT OF REFERENDUM The Bonds will be issued without a vote of the electors approving such Bonds, unless, within 45 days from the date of publication of this Notice of Intent, a petition requesting a referendum, signed by not less than 10% or 15,000 of the registered electors residing within the limits of the City, whichever is lesser, shall have been filed with the Clerk of the City or other recording officer of the City requesting a referendum upon the question of the issuance of the Bonds. If such a petition is filed, the Bonds shall not be issued until approved by the vote of a majority of the electors residing within the City qualified to vote and voting on that issue at a general or special election. This Notice is published pursuant to the requirements of Section 33 of Act 94 and Section 517 of Act 34. Sara Anderson, City Clerk City of Alma, Michigan (989) 463-8336