PRESQUE ISLE, Maine — Presque Isle councilors voted unanimously Wednesday in favor of bond payments for various city projects as well as initiatives related to economic and community development and housing.
During their regular council meeting, City Manager Martin Puckett shared with councilors information related to the Maine Municipal Bond Bank. The Bond Bank, an independent agency created in 1973 by the state Legislature, provides bond options to town and city municipalities, school districts, water and sewer districts and other government entities to fund capital projects.
Puckett noted that the Bond Bank offers interest rates as low as 1.08 percent that would lock the city into six-month payments for 10 years and remain at that percentage throughout that time period.
“We would be applying for their next session [of bond approvals] in the spring,” Puckett said.
In documents distributed to the council, Puckett outlined potential projects to be paid off through a $1.7 million bond. The projects would include the purchase of and improvements to the recreation and parks maintenance building ($275,000), improvements to the Industrial Council’s spec building ($1 million) and city hall renovations ($478,909).
He also highlighted debt service payments that the city will be taking off the books in 2021, including $148,500 for the public service building and lease for the current recreation maintenance building. The city also expects to pay off $85,480 in debt service related to EMS start-up costs in 2022, $90,051 for public works garage repairs in 2025 and $31,395 to ice maintenance at The Forum in 2030.
Council chairperson Kevin Freeman expressed support for the proposed bond application, citing the low interest rate and potential for the city to reduce or keep the tax mill rate flat for residents.
“It seems like too good of a deal to pass up,” Freeman said.
But deputy chairperson Jacob Shaw questioned the potential impact of more debt service on the city’s financial state.
“We have all these items that we’ll be taking off the debt service, but then we’re putting more debt on,” Shaw said. “I feel like we could lower the mill rate more if we didn’t have more debt.”
Presque Isle city manager Martin Puckett (right) discusses the city’s potential American Rescue Plan allocation while councilors Craig Green (left) and Randy Smith look on. (Melissa Lizotte | The Star Herald)
While speaking from the audience, Industrial Council executive director Tom Powers noted that although the city cannot finish payments early, the bond program’s fixed interest rate still leaves them with financial flexibility.
“You’re locked in there for 10 years, but at least you’re in control of what you can use the funds for,” Powers said.
All seven councilors voted in favor of allowing Puckett to proceed with application materials for Maine Municipal Bond Bank.
Councilors also authorized the city to allocate 2 percent of its American Rescue Plan funds to support Aroostook County’s hiring of an ARPA program administrator to assist municipalities with the federal legislation’s financial reporting requirements.
In a memo sent to city and town governments, county administrator Ryan D. Pelletier announced that Aroostook County expects to receive $13 million total that will be allocated to local communities.
Presque Isle officials have not yet received information on the city’s exact allocation, Puckett said. Once the funds become available, the city will have until the end of 2024 to complete their desired projects.
In a statewide ARPA priorities survey completed by 240 respondents, including 20 government and community entities from Aroostook, people from all Maine counties expressed strongest interest in pursuing infrastructure and broadband internet improvements.
“We’ve identified around 12 to 13 infrastructure projects in the city that could be funded [through the ARPA]” Puckett said.
In other business, councilors approved two Community Development Block Grants funded by the Maine Department of Economic and Community Development.
The first — a $1 million Rural Housing Preservation Community Block Grant — names the city as a “pass-through entity” for the statewide Rural Housing Preservation Program.
This means that the city will receive administrative fees for rural housing improvement projects that the Rural Housing completes in various state locations. Presque Isle’s finance department will receive $3,000 for acting as the pass-through entity for projects completed in the 2021-2022 calendar year.
Presque Isle director of economic and community development Galen Weibley said that the city’s role in those housing projects could help them obtain future funding for housing improvement projects.
“It gives us a chance to build our relationship with the state when applications for that type of funding become available,” Weibley said.
Following that decision, councilors unanimously approved that the nonprofit Ignite PI move forward into the second phase of the application process for its $250,000 Community Development Block Grant.
The council previously approved the first phase of the application in May, allowing Ignite PI to purchase the Northeastland Hotel through the funds and other grants and donations.
Ignite PI director of community innovation Clint Deschene told councilors that the block grant is being used to renovate part of the historic Northeastland into a co-working space.
Like with the Rural Housing Preservation Program, the city must act as a pass-through entity for the grant in order for Ignite PI to utilize the funds.
Between the CDBG funds, grants, loans and donations, Ignite PI has collected $1.4 million to make its vision a reality, Deschene said.
“The city has done a lot to help us and we’re excited to move forward [with the renovations],” Deschene said.
