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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 /> 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 /> Mayor Walsh called the meeting to order at 6:00 p.m., followed by the Pledge of Allegiance. <br /> APPROVAL OF AGENDA <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 /> Johnson asked if the City does not go forward with these facilities,then what are the options for <br /> repayment of the funds. <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 /> Printup moved,Johnson seconded,to approve the Sale of General Obligation Bonds as presented. <br /> VOTE: Ayes 3,Nays 0. <br /> ADJOURNMENT <br /> Printup moved,Johnson seconded,to adjourn the meeting at 6:09 p.m.VOTE: Ayes 3,Nays 0. <br /> ATTEST: M(022p, <br /> J <br /> Anna Carlson,City Clerk Dennis Walsh,Mayor <br /> Page 1 of 1 <br />