HomeMy WebLinkAbout12-13-2021 Special City Council Minutes MINUTES OF THE
ORONO SPECIAL CITY COUNCIL MEETING
Monday,December 13,2021
6:00 o'clock p.m.
ROLL CALL
The Orono City Council met on the above-mentioned date with the following members present: Mayor
Dennis Walsh, City Council Members Matt Johnson,and Aaron Printup.Richard Crosby III,and Victoria
Seals were absent.Representing Staff were City Attorney Soren Mattick,City Administrator/Engineer
Adam Edwards,and Finance Director Ron Olson.
Mayor Walsh called the meeting to order at 6:00 p.m., followed by the Pledge of Allegiance.
APPROVAL OF AGENDA
1.Approve Sale of General Obligation Bonds
Nick Anhut of Ehlers Inc. opened bids on behalf of the City earlier in the morning on the purchase of
$16,000,000 worth of financing for projects identified within the Capital Improvement Plan(CIP)
document including the Fire Station and Public Works Facility.They received 6 bids on behalf of the City
representing a variety of different firms.Baird's low bid came in at just under 2.01%and won the
purchase and this is a very favorable outcome for the City.Mr.Anhut noted the City received a premium
for the bid which means Baird is willing to pay higher than face-value for the amount of bonds they are
purchasing. With that,about$650,000 worth of premium is in that bid;therefore the City is able to lower
the principal outstanding on the bid.Mr.Anhut shared that the bond rating was upheld by Moody's and it
was noted that the City has had some positive trends related to the amount of debt outstanding,size of the
tax base, and maintaining a healthy amount of reserves which are all viewed as positive factors.The City
has about$724,000 per year of debt service to pay for the next few years.He stated this looks like a very
good result for the City.
Johnson asked if the City does not go forward with these facilities,then what are the options for
repayment of the funds.
Mr.Anhut noted these are tax-exempt bonds which mean the City must abide by certain IRS guidelines in
spending the proceeds.They must be spent on the projects identified and on public(governmental)
projects.The City must be mindful to spend the money within a three year timeframe. The second layer to
regulation involves the public hearing process they went through which identified the facilities needs
within the City. He stated the City could go through the process again if they want to appropriate the
funds for another facility.
Printup moved,Johnson seconded,to approve the Sale of General Obligation Bonds as presented.
VOTE: Ayes 3,Nays 0.
ADJOURNMENT
Printup moved,Johnson seconded,to adjourn the meeting at 6:09 p.m.VOTE: Ayes 3,Nays 0.
ATTEST: M(022p,
J
Anna Carlson,City Clerk Dennis Walsh,Mayor
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