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PUBLIC HEARING FOR PROPOSED CIT> .AGILITIES - AUGUST 28, 1991 <br />^ ^ e- <br />^ W ^1^ WThere have been rteetlrgc *- red'jce the <br />of the building but still trying to Tointaln a level cr <br />that would be in Keeping with the spirit of Orcnc. Since then <br />the Design Committee has reduced the public works bu’lding to <br />24,700 s.f. and has been able to reduce the adm 1 n 1 s tra t i ve/poi ce <br />building by another 1. OCO s.'?'. making the size 16,500 s.^. The <br />Committee has not addressed new furnishing for the building yet. <br />tanks <br />wh 1 ch <br />wh 1 ch <br />years <br />The Committee has considered items such as large rage <br />for gas, which are quite expensive ($150,000-200,000), <br />would pe’ *1t us to buy gasoline at a $.05/gallon cheape'' <br />Is estimated woulo pay for the tank Installation within 5 <br />Also sending people offsite to get repairs done or to <br />fill tanks takas them away from their work. <br />Now the total cost Is approaching the $4.0 million mark and <br />the Committee is hoping to reduce that further. <br />The next question for the Council to resolve was how to <br />finance the project. The Council determined to form a HRA and to <br />engage In essentially a sale and lease-back. One result of that <br />Is that a referendum will not be necessary. The question of <br />referendum Is perhaps misunderstood by t.he public. The <br />referendum that would have taken place would have been on a bond <br />with a yes or no answer or. that question only. There Is no room <br />for manuvering. If the result was ‘‘no, the bond should not be <br />Issued the whole process would stop and have to start all over. <br />Quite often the referendum Is a way for citizens to express their <br />pleasure or displeasure on the entire project. <br />Callahan felt that the citizens have been very Interested In <br />this project from the onset and he wanted to assure them that the <br />Council has carefully looked at all of the Issues involved. Me <br />felt that most citizens felt there should be a new facility, <br />however after that there Is not a single factor that has an <br />absolute answer. In the overall picture of the way that the <br />citizens want Orono to be run, the citizens are satisfied as far <br />as their own Input is concerned, and if they are not, it Is not <br />too late to change as the money has not yet been borrowed nor has <br />a contract to build been finalized. <br />The HRA, unlike the referendum method, gives us a flexible <br />method of financing at a time when the lowest Inte-^est rate for <br />bonds Is available and construction costs are also down. The <br />referendum could delay the project for an indefinite time. <br />The City does have a large cash reserve, $2.3 . 6 <br />million. However, the Council has not decided whether to use the <br />entire reserve and borrow the remainder or to borrow the entire <br />amount and keep the Investment of the reserve. The general <br />revenues of the City are also affected by this reserve as the <br />City receives over $100,000 each year through interest. There are <br />many reasons for maintaining the reserve. including the State <br />closing down on the ability to tax and emergencies. A decision <br />will have to be made within the next month or two.