09-26-2016 Council Packet - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 22. 2017 BUDGET AND PRELIMINARY LEVY (continued) Olson stated if the Council approves the pavement management plan, there is a 30 -day period where a petition can be brought requesting a referendum or a vote on it by the general public. If that happens, that 30 days would delay the bonding process. McMillan noted the City has utilized the bonding process to complete a number of road projects in the past. McMillan stated to her understanding the City has spent over $400,000 in budget surpluses, which is not sustainable, and that the other part of the budget surplus was used to fund the streetlights in Navarre. McMillan stated the City has a number of roads that need to be addressed and the Council is now at a point where something else can be considered Printup asked whether cities ever look at longer terms and bond in bigger amounts. Olson stated that is a strategy that is sometimes employed. Loftus stated there should be a minimum of a three-year bonding plan since it is not favorable for the City to go out more frequently than every three years. Olson stated larger bond issues tend to draw more bids and that more bids generally translate into better interest rates. Olson stated if the City does decide to bond for roads, a pavement management plan would need to be approved identifying how the money will be spent. McMillan stated the levy can be lowered if the City decides to go out for bonds but that they cannot go above the preliminary levy. McMillan stated the City needs to make sure there is a little bit of a cushion. McMillan asked how long it would take to complete a pavement management plan. Olson stated the pavement management plan can be updated fairly quickly and that it is more a matter of identifying the roads to be completed. Loftus stated the purpose of tonight's hearing was to present the information to the public. Loftus stated the number one complaint Staff hears at City Hall is the condition of the roads. McMillan stated the City has an opportunity with the refunding to look at bonding, which the City has not done in a while, and that repairing the roads with the budget surplus is not sustainable going into the future. McMillan requested the preliminary levy discussion occur near the top of the agenda at the next Council meeting. 23. AUTHORIZATION TO ISSUE 2016 GO REFUNDING BONDS, SERIES 2016A — RESOLUTION NO. 6675 Walsh moved, Printup seconded, to adopt RESOLUTION NO. 6675, a Resolution Providing for the Sale of $2,800,000 General Obligation Refunding Bonds, Series 2016A. VOTE: Ayes 4, Nays 0. Page 33 of 34