08-28-1991 Council Minutes City Facilites Public Hearing

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PUBLIC HEARING FOR PROPOSED CITY FACILITIES — AUGUST 28, 1991 Jabbour noted that this theory goes back to the State's theory of the ability to pay, which everyone is trying to do something about. The numbers quoted could be 20 -30% lower. Maureen Steele Bellows, 265 Brown Road South, explained that she is a member of both the Planning Commission and the Design Committee and noted that the information presented by residents has been frustrating as many times the information has been proven inaccurate. For instance, Shorewood recently hired her firm to build a new public works building. She felt that people should come to the Design meetings, know what they are talking about, be willing to listen and last of all be willing to do some homework. Skip Casco Point Road, asked if the projected costs were based on the current population or the estimated 9000 maximum population. He felt that there should be more information available. Carolyn Drude, Ehlers & Associates, financial advisor to the City, explained what they have assumed is no growth so that if there is growth over the period of 15 years, the dollar amount to the taxpayer would become less. Skip asked if the existing surplus building funds have been set aside for the building. Are there other funds in reserve? Callahan noted there are some other funds. in reserve, however it is different than corporate accounting as there as specific funds such as park dedication, etc. Skip felt that is was reasonable to expect the Council to show a curve of population differences, etc. so the public knows what they are dealing with. Jabbour noted that is where they are exacting. The Council explained that spending some of the reserves could affect the taxpayer greatly. He noted that some of the money may be used,, and some may be put in escrow: The City has been fortunate*to be able to borrow at a lower rate than can. be obtained through investment. He felt that the market will get better as time goes by. Jabbour noted that the Council must find the scenario in which the Council will be spending the least amount on the project. Their main concern is what is the cheapest, most effective way to run Orono. Callahan explained that the bonds go out at an average and may actually be borrowed at a lower rate. Also, at the point when they start to exceed the average amount, the City has an option to call the bonds and reissue. Julian Hook, 2650 Kelly Avenue, asked if the $2.5 million is with accrued interest. M