By Amanda Estes

Staff Writer

    On Nov. 6, South Portland residents will decide the
fate of a $56 million bond that would fund additions and renovations to
the city’s high school. With a 5-2 vote, the city council approved the
second reading on the bond ordinance during Monday’s regular meeting.
Citing lingering concerns over a potentially detrimental impact on the
city’s bond rating, councilors Linda Boudreau and Kay Loring opposed
moving the bond forward.

    “We’re not as well positioned as we should be with
other communities that have the same rating,” Boudreau said on Tuesday.
Referring to a report from the city’s financial advisor, Joe Cuetara,
Boudreau said South Portland is not as strong as it needs to be in its
debt ratio and reserve accounts.

    According to Cuetara’s report, dated May 3, under
the category of unreserved general fund balance as percent of revenues,
South Portland ranks at 24.27 percent compared to a rate of 28.84
percent for Aa-rated medians. In terms of unreserved, undesignated
general fund balance as percent revenues, the city comes in at 12.86
percent compared to 24.99 for Aa medians.

    Boudreau interpreted Cuetara’s report as a warning
that if the city takes on more debt and does not bolster its reserve
account, its bond rating could drop. In areas such as paving reserves,
she said the city’s funds are less than other communities with similar
ratings.

    During Monday’s meeting, Boudreau said she was “surprised at (herself).”

    “I’m not going to vote for this even though two weeks ago I expected I would,” she said.

    Boudreau cited a number of future CIP projects that
could go out to bond. She cited the public works facilities, the
community pool, the connector road, the armory and city hall as
projects that have been in the works for some time.

    Referring to a budget workshop held prior to the
council meeting, Boudreau called for the city to take a year to develop
a plan for managing its money.

    “We sit there discussing adding police officers and
adding five hours of help in the planning department and to be able to
afford it, we talk about cutting one percent off all the departments,”
she said on Tuesday. “When I see us doing these kinds of financial
maneuverings…it’s time to pause and reflect.”

    Boudreau also questioned what implications school
consolidation could have on South Portland. She said the latest
proposal from Augusta calls for South Portland to consolidate with Cape
Elizabeth.  

    Loring called the total $85 million bond-with $29
million in interest- “astronomical.” Besides doubling the city’s bond
obligations, she said the existing high school site is “the poorest
piece of property to put $85 million into.” She said she was still
concerned about the amount of site work that would need to be done,
mainly the diverting of storm water, which currently runs across the
site and under the building.

    Councilor Jim Soule, who at the first reading asked
for language regarding the bond’s term, proposed an amendment to add
language stating “the principal of such bonds shall be paid in
approximately equal annual installments over a period not to exceed 20
years.” After the amendment passed with a vote of 6-1, with Loring
opposed, Soule said he could support the bond.

    Also in favor of moving the bond forward, councilor
Maxine Beecher, said the citizens of South Portland know what they want
and what they don’t want.

    “I don’t like any kind of indebtedness, but the
residents should make the decision,” she said. She said the longer the
project is postponed, the more expensive it will become.  

    Councilor Ralph Baxter shared that concern and said
$56 million “is not out of order” in today’s market. He said ultimately
the issue is about South Portland’s young people.

    “Let voters either help or not help the kids of South Portland,” he said.

    In terms of residents’ current feelings on the bond,
Mayor Claude Morgan read two letters from residents concerned about the
impact of the bond on taxpayers. Gary Crosby said initially he was
neither for nor against the bond, but said it was best for residents to
make the decision, rather than the council.

    David Bourke also came forward and inquired as to
why the municipal golf course was never considered as a suitable site.

    Dan Cecil, the project architect from Harriman
Associates, said they did not take the golf course into consideration
because it is valuable open space. He also said the golf course is on
the western edge of the city, whereas the existing high school is more
centrally located.     

    Cecil said the public would have more opportunities
to ask questions during a series of public forums in the coming months.