City officials consider payment options
for pending projects
PRESQUE ISLE, Maine — The bonding process for the Community Center, splash pad and outdoor pool was discussed at Monday night’s councilors’ workshop. City Manager Jim Bennett and councilors talked about methods for funding the projects, with the manager recommending the community issue its own bonds, with the advantage of setting terms local officials think work best for the municipality.
Bennett recommended a 10-year note for the pool and splash pad, noting the recently-acquired fire truck would be paid for by 2017. He said what’s currently being paid on the truck could then be put toward the pool over the next several years, resulting in about a 14 cent impact on the tax rate.
“Even though we’ve been criticized for not taking care of stuff, the community’s not in bad shape,” he said. Bennett indicated only a few things needed attention in the near future, including a new roof for the Forum and whatever councilors decided as far as City Hall was concerned.
Bennett offered a summary of pledges, suggesting they use the money as a source of payment for loans taken out. Fund-raising efforts continue, with the city still nearly $1 million short of the $3.5 million goal. Donations are still being accepted.
“We could do an $8 million bond — $5 million payable over 20 years, with a balloon payment of $3 million after that. That would end up with about a $400,000 payment per year,” said Bennett, adding, “if Revenue Sharing comes back, we’ll have more than enough money and then some.”
Councilor Pete Hallowell asked “does anyone have a problem borrowing $5 million, when we told the people $3.5 million?”
“The reality is if you don’t use this cash, you’ll end up borrowing $8 million,” responded Bennett.
Bennett said “ideally, there’s revenue potential for the city,” once the Community Center is completed and in use.
“This is our one big chance for the next 50-100 years. This is possibly our leap of faith part that fits in too,” said Councilor Craig Green.
The bid deadline for the pool and splash pad portion of the project was Tuesday afternoon. No information was available at presstime.
Councilors will continue discussion of the Community Center project next Monday.
Bennett also discussed Revenue Sharing with councilors, stating “based on figures from Augusta, I anticipate receiving the same amount as last year.”
If that happens, the city will have roughly $400,000 to put toward municipal needs. Bennett indicated part of that would help replace the $125,000 taken from reserve to offset taxes, with the remainder going toward things like a new police cruiser and a mower for the Recreation and Parks Department.
City Council will meet for another workshop on Monday, April 20, tentatively scheduled for 6 p.m. The public is welcome. For more information, call 760-2785 or visit www.presqueislemaine.gov.
