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MINUTES OF THE <br />ORONO SPECIAL CITY COUNCIL MEETING <br />Monday, December 13, 2021 <br />6:00 o’clock p.m. <br />_____________________________________________________________________________________ <br /> <br />Page 1 of 1 <br /> <br />ROLL CALL <br />The Orono City Council met on the above-mentioned date with the following members present: Mayor <br />Dennis Walsh, City Council Members Matt Johnson, and Aaron Printup. Richard Crosby III, and Victoria <br />Seals were absent. Representing Staff were City Attorney Soren Mattick, City Administrator/Engineer <br />Adam Edwards, and Finance Director Ron Olson. <br /> <br />Mayor Walsh called the meeting to order at 6:00 p.m., followed by the Pledge of Allegiance. <br /> <br />APPROVAL OF AGENDA <br /> <br />1. Approve Sale of General Obligation Bonds <br />Nick Anhut of Ehlers Inc. opened bids on behalf of the City earlier in the morning on the purchase of <br />$16,000,000 worth of financing for projects identified within the Capital Improvement Plan (CIP) <br />document including the Fire Station and Public Works Facility. They received 6 bids on behalf of the City <br />representing a variety of different firms. Baird’s low bid came in at just under 2.01% and won the <br />purchase and this is a very favorable outcome for the City. Mr. Anhut noted the City received a premium <br />for the bid which means Baird is willing to pay higher than face-value for the amount of bonds they are <br />purchasing. With that, about $650,000 worth of premium is in that bid; therefore the City is able to lower <br />the principal outstanding on the bid. Mr. Anhut shared that the bond rating was upheld by Moody’s and it <br />was noted that the City has had some positive trends related to the amount of debt outstanding, size of the <br />tax base, and maintaining a healthy amount of reserves which are all viewed as positive factors. The City <br />has about $724,000 per year of debt service to pay for the next few years. He stated this looks like a very <br />good result for the City. <br /> <br />Johnson asked if the City does not go forward with these facilities, then what are the options for <br />repayment of the funds. <br /> <br />Mr. Anhut noted these are tax-exempt bonds which mean the City must abide by certain IRS guidelines in <br />spending the proceeds. They must be spent on the projects identified and on public (governmental) <br />projects. The City must be mindful to spend the money within a three year timeframe. The second layer to <br />regulation involves the public hearing process they went through which identified the facilities needs <br />within the City. He stated the City could go through the process again if they want to appropriate the <br />funds for another facility. <br /> <br />Printup moved, Johnson seconded, to approve the Sale of General Obligation Bonds as presented. <br />VOTE: Ayes 3, Nays 0. <br /> <br />ADJOURNMENT <br /> <br />Printup moved, Johnson seconded, to adjourn the meeting at 6:09 p.m. VOTE: Ayes 3, Nays 0. <br /> <br /> <br />ATTEST: <br /> <br /> <br />_____________________________________ _______________________________________ <br />Anna Carlson, City Clerk Dennis Walsh, Mayor