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MINUTES OF THE <br /> ORONO CITY COUNCIL MEETING <br /> Monday,March 30,2020 <br /> 6:00 o'clock p.m. <br /> Walsh recognized Gina Paulucci for her donation to the police officers.He also noted all the bids came in <br /> with a lesser amount than the City anticipated. <br /> PUBLIC COMMENTS <br /> None <br /> 6. REFUNDING OUTSTANDING 2010A BONDS <br /> Rief explained that Olson and himself were in contact with Ehlers&Associates and they did an <br /> evaluation regarding outstanding bonds.The 2010A bonds,in the amount of 1.4 million dollars,were <br /> eligible to be refunded,which would save the City about$160,000. Based on what the city has in <br /> investments and cash reserves,they felt it was a good time to refund the cash reserves over the next five <br /> years. Some of the money is MSA funding and the other is a general funds bond. <br /> Walsh said the City is fortunate to have money in the bank. He and Rief looked to see what could <br /> possibly be paid off early,and the only bonds the City has that are callable are the 2010A bonds for 1.4 <br /> million.The$160,000 that will be saved in interest is approximately$23,000 a year. The City also has <br /> $145,000 which is in the budget every year for principal payments.There is another$150,000 in the MSA <br /> funds.He stated this opens up the budget for other things the City wants to fund. Because it is a line item, <br /> it leaves room for flexibility.The City of Orono is run like a business,and their good fiscal responsibility <br /> is paying off right now. <br /> Johnson asked if there was any concern,going into somewhat of an unknown economy,to be parting with <br /> any of the reserves. <br /> Walsh said there is so much in reserves currently, $10420 million,that the City is sitting fairly good. He <br /> noted they are paying 3%interest and this bond would not get paid off until 2027.The line item is being <br /> freed up much earlier to take advantage of other things the City wants to get done in the next few years. <br /> Rief said he and Olson feel comfortable paying it off and the City is in a good financial position.The$12 <br /> million would pay roughly 80%of the City's expenditures,and all of the requirements are being met as <br /> far as cash on hand and in reserve. <br /> Johnson said it was more of a rhetorical question and agrees with lessening City debt. <br /> Johnson moved,Seals seconded,to approve Refunding Outstanding 2010A Bonds.VOTE: Ayes 5, <br /> Nays 0. <br /> MAYOR/COUNCIL REPORT <br /> Seals stated she is thankful that they are home and can work from home. They survived the first day of <br /> distance learning. <br /> Crosby thanked Staff for their assistance in getting online and getting everything together. He reminded <br /> everyone to get take-out as much as possible to support the small businesses in the area.He encouraged <br /> everyone to keep the social-distancing and hand-washing and noted that we will all get through this. <br /> Page 2 of 4 <br />