Demolition, site work, paving and new construction of a mixed-use development in Eastpointe, Michigan. Completed plans call for the construction of a 44,029-square-foot, two-story above grade fire / police facility; for site work for a fire / police facility; for the demolition of a 20,000-square-foot fire / police facility; municipal facility; municipal facility; sidewalk / parking lot; and for paving for a sidewalk / parking lot.

https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3582690 S&P Global Ratings assigned its 'A+' long-term rating to the City of Eastpointe, Michigan's $10 million series 2026 limited-tax general obligation (GO) capital improvement bonds. Eastpointe’s full-faith-and-credit limited-tax pledge, within statutory and constitutional tax limitations, secures the 2026 bonds. We rate the limited-tax GO debt at the same level as our view of the city’s general creditworthiness, given that ad valorem taxes are collected from the city’s entire tax base and because of a lack of limitations on the fungibility of resources available for debt service. The bond proceeds will be used to provide partial funding for a new police and court facility. Credit highlights The rating reflects our view of Eastpointe’s proactive management team providing conservative budgetary assumptions, leading to steady financial performance and solid total reserves in the general fund, supported by its stable, albeit somewhat limited economy. Typically outperforming its budget, the city has reported consistent surpluses since fiscal 2022, leading to an increase in reserve levels due to conservative estimates and year-over-year expenditure savings. While on a purely unassigned basis, general fund reserves are somewhat limited (at nearly $4.5 million, or 14.6% of general fund revenue in fiscal 2025), the city maintains several classifications of committed balances, including its policy-established emergency, operating, and budget stabilization reserves as well as pension and other postemployment benefits (OPEB) funds, that, in our view, could be made available if needed. When accounting for these excess funds, reserves levels were just under 50% in fiscal 2025 (year-end Sept. 30). The fiscal 2026 budget was amended to show a $3.2 million deficit, but is likely to be outperformed, with an estimated deficit of approximately $1.5 million, primarily fueled by the timing of project costs incurred in the previous year. We expect some movement of reserve classification in fiscal years 2026 and 2027, as unassigned funds will be moved to committed to provide additional one-time funding for the new police and court facility. While unassigned reserves are projected to fall to approximately $131,000, we believe that the additional flexibility provided by the aforementioned funds offers sufficient cushion to maintain balanced operations. The rating further reflects our view of Eastpointe’s: Location as an inner-ring suburb of Detroit with a mostly built-out and primarily residential tax base (at 80% of the total), with below-average economic metrics, although both assessed and market value have grown steadily in recent years. The city has a large automotive-manufacturing presence, which is an industry that we view as cyclical. Revenues that have typically outpaced expenditures, lending to stable operations and a recent build-up of total general fund reserves. We expect some fluctuations in total reserves as one-time funding will be provided for the police facility project, in conjunction with the current bonds, and an $8 million grant. Financial management policies and practices that are in line with those of peers, with regular budget monitoring through quarterly budget-to-actual and investment reports provided to the council. The city has formal investment, debt and fund balance policies, the latter of which requires certain amounts to be held for emergency, operating, and budget stabilization reserves totaling 15.4%, which is earmarked as committed. Capital planning is done annually, and the city has a five-year financial forecast that it updates annually. Management is also taking measures to mitigate cyberrisk. Elevated debt and liabilities, with total fixed costs comprising nearly 20% of the budget, propelled by above-average pension and OPEB costs. We expect debt costs will remain manageable as the city has no additional debt plans. City employees participate in the Michigan Municipal Employees' Retirement System, an agent multi-employer, defined benefit pension plan. It makes its full-required contribution according to Michigan statutes each year. As of June 30, 2025, the net pension liability was $43.2 million. For information regarding retirement liabilities and costs, see "Pension Spotlight: Michigan," Aug. 22, 2023. For more information on our institutional framework assessment for Michigan municipalities, see "Institutional Framework Assessment: Michigan Local Governments," Sept. 9, 2024. Environmental, social, and governance We view environmental, social, and governance factors as neutral within our analysis. Outlook The stable outlook reflects our expectation that Eastpointe will maintain balanced operational results and a healthy total reserve position compared with the budget throughout the two-year outlook period. Downside scenario We could lower the rating if total general fund reserves decline beyond current expectations, whether due to escalating operational costs or major additional capital needs. Upside scenario We could raise the rating if the city’s local economy expands and if local economic metrics show sustained improvement. ---------------------------------------------- Demolition Demolish and remove the existing one-story police and court building (20,000 sq. ft.), including all brick and CMU construction and basement, in its entirety. Reconfigure and develop the site to accommodate new police and court building and parking lot. Police and Court Building Construct a new two-story building (44,029 sq. ft.) on a reconfigured 3 acre site. The building will feature a combination of brick veneer and a metal panel exterior system. The interior will be constructed of a combination of metal stud framing and CMU walls and steel trusses, and topped with a combination of metal roof system and single-ply roofing system. Reference Number 0000420508 The City of Eastpointe is building a new, two-story Police Department and District Court Building with a separate gun range. The project includes new construction, demolition of the current building and site improvements. Demolish and remove the existing one-story police and court building (20,000 sq. ft.), including all brick and CMU construction and basement, in its entirety. Reconfigure and develop the site to accommodate new police and court building and parking lot. Question Acceptance Deadline 05/05/2026 05:00 PM EDT Questions are submitted online No General Requirements - Bid Deposit Required - Contractors License Required - Installation Required - Insurance Required - Local Service Required - Prevailing Wage Required - Safety Standards Plan - Warranty Information Required Bonding Requirements - Bid Bond 5 % - Performance Bond 100 % - Maintenance Bond 100 % - Surety Bond 100 % - Labor and Materials Bond 100 % - Payment Bond 100 % Request for Proposal shall be accompanied by a certified check, bank draft or satisfactory bid bond in an amount of 5% of the maximum bid amount. Checks shall be made payable to "City of Eastpointe". Request for Proposal may not be withdrawn for a period of sixty (60) calendar days after receipt of Request for Proposal. The successful respondent will be required to furnish the required insurance and bond certificates. The Owner reserves the right to reject any or all proposals and to waive irregularities in bidding, or to accept the lowest responsible proposal or enter into negotiations with the apparent low qualified respondence that, in the opinion of the Owner, will serve his best interest.