Orono’s plan to build a new police station is not changing, but how it’s being funded is.
The Orono Town Council unanimously approved an additional $1.25 million in bonds Monday for the town’s new police station.
A portion of the station, $1 million, was initially going to be paid for by the town’s fund balance, but that amount would put the town under the balance’s required amount.
The additional cost puts Orono’s total bonds for upcoming capital project plans to more than $10 million.
Orono officials have discussed multiple projects, including the police station, sewer infrastructure upgrades and a library expansion, to ensure the town is spending money responsibly. Plans for funding have changed since initial discussions last year, and were finalized with Monday’s vote.
Councilors approved an updated fund balance policy Monday that requires roughly two months of funds to be kept in the account at all times. The decision to fund the police station with undesignated funds would have gone against the newly adopted policy.
Even if the policy wasn’t in place, the $1 million decision may not have been a good decision for the town’s future.
Knowing the typical expenses, revenues and timing of when bills are due, it’s projected that the town would have a negative checking account balance in August 2027, meaning the town would not have the cash on hand to pay its bills for “a short stretch,” Town Manager Clint Deschene said Monday.
“If the Council were to hold the status quo, I would recommend that staff and I would start to get together the paperwork to set up an adequate amount of money so that come August of next year, if we need it, it’s already there and waiting for us,” Deschene said. “We don’t want to run out of money and then go scrambling to find it.”
The additional bonded amount will add to the town’s debt, which is paid off in payments in the yearly budget.
Councilors also approved the town manager to sign a purchase and sale agreement for a home at the intersection of Kelly Road and Main Street.
The agreement doesn’t buy the building or land, but puts down $1,000 while the town learns more about the property and reviews an appraisal.
Town officials brought forward purchasing the building and land because plans for the Route 2 corridor in Orono propose building a roundabout at the intersection, and it could create the opportunity to build a road from that lot to Basin Mills, a neighborhood east of Route 2.
“The town would carve off the house and an acre of land, and then potentially look longterm to create a road to go to other parts of the town,” Economic Development Director EJ Roach said Monday.
The single acre and home would be sold and the rest of the land would be used for the roundabout and possible town developments, according to a town memo. It’s unclear how much the property will cost and where the road will run, but more information will be shared at the council’s Sept. 14 meeting, Deschene said.
The vote may be “a bigger vote than maybe we’re letting on” because of its future possibilities, Council Chair Dan Demeritt said.
“It makes sense on the face of it just for the Route 2 stuff, and then if it ends up being something particularly transformational for that space and how we access the Basin and connect our neighborhoods together, all the better,” Demeritt said.