Orono council adopts FY2027 budget, schedules $9M bond hearing and approves sewer rate change

The Orono Town Council on June 8 approved the town’s FY2027 municipal budget, set a July 13 public hearing on a proposed $9 million bond package, and enacted several related fiscal measures affecting sewer fees, the water pollution control facility and the five‑year capital plan.

The council voted unanimously to adopt the FY2027 municipal budget as amended. Town staff and councilors described the budget as a status‑quo proposal intended to sustain current service levels while funding capital work partially through reserves and bonding. Councilor disclosure and a participation motion were recorded: Councilor Hardison disclosed a familial relationship with a deputy fire chief and a related participation motion was resolved (the participation motion passed 6–0 with Andrea’s participation noted separately). The main budget motion passed unanimously.

The council also set a public hearing and possible final action for July 13, 2026 at 5:00 p.m. on an ordinance authorizing up to $9 million in general obligation bonds to finance capital improvements. According to bond adviser Joe Cutara and town staff, the borrowing as presented would allocate about $2.6 million to the library project, $400,000 to the public safety / police station project and roughly $6 million to sewer projects, with issuance targeted for October to match cash‑flow needs and IRS timing rules. "We're going to borrow $9 million for the town," Cutara said, and he added that councils need not pick final amortization choices at this meeting.

Cutara recommended matching amortization to project type (for example, 20 years for the library and 30 years for the police station; the sewer—an enterprise fund—would use level P&I). He told the council a planning assumption of "4.25%" for modeling, while cautioning that market rates could change before an October sale. Councilors discussed warrant wording (per‑project maximums versus a lump‑sum warrant) and staff and bond counsel advised that the warrant’s specificity affects future flexibility.

On enterprise finances, the council separately approved the WPCF FY2027 operating budget of $2,245,483 and $213,100 for capital improvements (total $2,458,583) and authorized using $35,000 from WPCF unassigned fund balance to cover higher design costs for a replacement sewer press after engineering adjustments.

Councilors also approved a change to the sewer use fee structure effective July 1, 2026; the meeting transcript contains garbled numeric formatting for the per‑100‑cubic‑foot rate and the new minimum quarterly charge, and staff committed to clarifying the precise billing numbers in the record. The council approved the town fee schedule update effective July 1, 2026 and reaffirmed the five‑year capital investment plan for FY2027–FY2031, noting one reallocation from a cemetery reserve to support an expanded cemetery/trail project.

On tax rules, the council adopted the statutory maximum delinquent tax interest rate for FY2027 and separately set the town’s interest on overpayments/refunds at 3%. Staff acknowledged and agreed to correct a linked memo that incorrectly described the staff recommendation on delinquent interest; the council kept the adopted orders on the record.

The council approved the consent agenda and numerous routine items and directed staff to post corrected materials where a memo contained a typographical error. The public hearing on the bond ordinance is scheduled for July 13, when the council may finalize the borrowing and the "not to exceed" amounts become fixed unless reposted.

What happens next: the council will hold the public hearing on July 13; if it adopts the bond ordinance that evening, a 20‑day override/notice period follows and the town would return to the market for bonds when timing and market conditions are appropriate. The town manager and bond adviser said they will bring final amortization and rate scenarios back to council in advance of any issuance.