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Orono accepts bond sale, approves 10‑year facilities plan and authorizes new depository option
Summary
The school board approved the district 10‑year LTFM plan, accepted a successful bond sale (series 2025A), and authorized Ehlers and Pershing LLC as options to manage and hold bond proceeds.
The Orono Public School District Board of Education on May 13 approved its 10‑year long‑term facility maintenance (LTFM) plan for fiscal 2027–2036, accepted the sale of general obligation bonds issued May 13 and authorized an additional investment/depository option for bond proceeds.
The board voted unanimously (roll calls recorded for the LTFM and intermediate‑district items) to approve the district’s updated 10‑year LTFM plan and the intermediate district (Intermediate School District 287) proportionate share, and to accept the bond sale resolution awarding the sale of general obligation facilities maintenance, capital facilities and tax abatement bonds, series 2025A. The winning bidder on the sale was Piper Sandler, the district’s financing advisors reported; the sale attracted six bids and produced a low interest bid of roughly 3.30 percent, below the district’s presale estimate. Ehlers staff reported the net effect reduced principal and interest costs by about $360,000 compared with initial sizing estimates.
Nick Tainter, Orono’s director of business, asked the board to approve the district LTFM budget and plan, stressing the plan funds deferred maintenance and preventive strategies across campus. “It requires an annual approval on a 10‑year facility maintenance plan,” Tainter said during his presentation, listing priorities that came from a 2023 facilities assessment and more recent updates: windows and tuck‑pointing, roofing, parking lots, HVAC and building‑envelope work.
Shelby McQuay of Ehlers, the district’s municipal finance partner, summarized the bond sale results to the board. “You had a good sell day,” McQuay said, citing the six bidders and the winning low bid of 3.30 percent; she told the board the sale allowed the district to downsize borrowing while leaving needed funds in the project accounts.
The board also approved the district’s proportionate share of Intermediate School District 287’s LTFM budget for fiscal 2027—the district’s stated share is about $46,356—and approved the bond sale resolution awarding the sale to Piper Sandler. Several board motions were taken by roll call and recorded as affirmative.
Related to the bond proceeds, the board added an agenda item on short notice to authorize Ehlers Investment Partners as an option for investment management and to designate Pershing LLC as a potential official depository for 2025 bond proceeds. Dr. Flesher explained the authorization would allow the district to open a deposit/investment account with Pershing if staff choose that path before the June meeting. The board approved that authorization by voice vote.
District leaders said proceeds from the sale will be used to accelerate projects identified in the LTFM plan and capital list: tuck‑pointing, window replacement where leaks were reported, science lab updates at the high school, field and pool maintenance, parking lot repairs and selected HVAC and roof work. Tainter said some of the bond proceeds will also be used for debt service structuring to smooth levy impacts.
Board members thanked finance staff, the district’s external advisors and Moody’s (which affirmed the district’s rating) for the financing work. Staff said the district will return with project schedules and contract awards as projects are bid and vendors selected.
