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Ellsworth council approves bond anticipation note for school track and fire apparatus after first proposal fails
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Summary
After an initial proposal to authorize up to $22,150,000 failed, the City Council approved a reduced bond anticipation note to finance a school track reconstruction and replacement fire engine/tanker. Council discussed fundraising, debt timing and impacts on city debt service.
The Ellsworth City Council voted to authorize a bond anticipation note to provide short-term financing for reconstruction of the high school track and acquisition of fire apparatus after an earlier, larger authorization failed.
City Finance Director Nate Moore told the council the two primary capital priorities were a full rebuild of the school track and replacement of a reserve/frontline fire engine. Amy Bowles, superintendent of schools, said the track cannot simply be resurfaced and estimated a full reconstruction at roughly $1,150,000, including replacing the infield soccer surface and improving ADA access. She described a fundraising plan that aims to cover about one third of the cost and said the school has already replaced lighting through the tax-exempt lease purchase program.
Fire Chief Scott Gilroyal recommended replacing the department’s reserve engine (Engine 7) with a new frontline engine, moving the current frontline engine into reserve status to extend its useful life. He said repair costs on the current frontline engine (Engine 2) have already exceeded $30,000 in a recent year and the increased call volume since the city took over EMS in 2019 had accelerated wear.
Councilor John Stein summarized prior budget discussions and the city manager explained the financing approach: the council would authorize a bond anticipation note (BAN) as a short-term line of credit while bids and RFPs are completed, then convert the BAN into a longer-term bond when the projects are ready. Moore said the anticipated BAN would be sized to cover the project estimates and contingencies and then the long-term bond terms would be set to match expected asset life (longer for the track, shorter for apparatus).
An initial motion authorizing up to $22,150,000 in notes did not receive the required five-councilor majority and failed. The council then approved a revised order authorizing issuance of up to $1,770,500 in general obligation notes in anticipation of bonds for the school track and fire engine/tanker. Councilors discussed the need to secure private fundraising for the track, the timing of RFPs so the work can occur before the next school season, the availability of debt-service room in future budgets, and the life of the assets when converting BAN to longer-term bonds.
Next steps: staff will seek RFPs for the track and apparatus, return with firm bids and a recommended BAN draw schedule, and continue fundraising outreach for the school’s share. Council members said they expect funding details and debt schedules to be presented again before final bonding.
