Select Board authorizes RFP and bond‑bank application to finance fire station match

The Select Board voted Jan. 20 to pursue competitive financing for the town’s match on a proposed new fire station and to keep the Maine Municipal Bond Bank (bond bank) as a backup option.

The building committee recommended an RFP to local and regional lenders to solicit two scenarios — conventional debt and a general obligation (GO) bond — with explicit language allowing prepayment without penalty. Committee members explained the bond bank can offer lower nominal rates in some structures but typically issues a fixed amount; if the town applies for the bond bank and receives an award, it may not be advantageous if the final need is substantially lower than the applied‑for amount. The bond bank spring application deadline was cited as Feb. 4, and staff recommended submitting an application to preserve that option while running an RFP.

Board members discussed term lengths, the likelihood of fundraising reducing the borrowed amount, and comparative estimated rates (committee noted illustrative rates in the high single digits for private bank financing versus potentially lower municipal rates depending on tax treatment). One board member suggested preparing a simple comparison chart showing the cost at different rates and terms to inform the eventual decision.

The board moved, seconded and approved issuing an RFP for funding up to $2.1 million and completing the bond bank application simultaneously. The committee will collect proposals and present comparative terms and prepayment provisions for the board to weigh before committing to a loan instrument.