Orono Seeks Public Input on Urgent $11.6M Funding Plan

URGENT UPDATE: Orono is moving swiftly to secure funding for over $11.6 million in critical projects, with a town meeting planned for early 2024 to gather resident feedback. Following a decisive Town Council meeting on Monday, officials are considering various funding sources, including bond issues, taxpayer funds, and undesignated reserves, as they aim to enhance community facilities.

The proposed projects encompass a library expansion, significant sewer infrastructure repairs, and a new police station. To finance these needs, Orono plans to issue $9 million in bonds, which includes a crucial $6 million allocation for sewer maintenance. This decision comes as the town seeks to address pressing community demands while managing its existing debt of nearly $16 million from four active bonds.

Council Chair Dan Demerritt emphasized the importance of these endeavors, labeling the library and police station initiatives as “multi-generational projects” that will enhance services for residents. The library expansion, which aims to double its size from 6,500 to over 13,000 square feet, has been in the pipeline since 2023 and is projected to cost upwards of $7 million.

In an effort to manage costs, the council decided to allocate $1.2 million from capital plan reserves originally earmarked for road projects. This move is expected to reduce the bond amount and save the town approximately $40,000 in annual interest. However, Councilor Jacob Baker acknowledged the potential for public perception issues, stating, “I understand the perception that we’re putting public works projects on hold, but this is necessary to save on interest.”

The funding strategy also includes a $3 million bond to support an additional $5.6 million in upcoming projects. The sewer upgrades, which will be funded through a bond paid off by sewer rate payers, will cause a 5% rate increase in both 2027 and 2028 to cover interest costs. The council unanimously supported these sewer upgrades, underscoring their necessity for the community.

Despite concerns over adding to existing debt, Kate Dufour from the Maine Municipal Association clarified that the town’s total debt is manageable compared to other municipalities in Greater Bangor. “It’s no different than a credit card. It’s getting cash upfront to perform some sort of function,” Dufour stated, explaining that such bonds are essential for funding large-scale projects.

Orono plans to move forward without a direct town vote on the bond decisions, though community input will be solicited at the upcoming town meeting. Town Manager Clint Deschene noted the evolving priorities within the community, stating, “I hear a lot of ideas of other things we could be doing, and if we spend our capital budget all out, that’s less than we could be doing.”

As Orono grapples with its financial strategies, councilors are also cautious about the volatile economy, maintaining $800,000 in reserve to address unexpected needs. This prudent approach might prevent the need for further bonding in the near future.

The upcoming public meeting will be crucial for residents to voice their opinions and influence the future of these essential projects. As the town prepares for significant changes, the anticipation builds for what lies ahead in 2026.

Stay tuned for further updates as Orono navigates this pivotal moment in its community development.