2012-05-31 / In the News

Biddeford officials consider bond purchase

Biddeford officials are looking in to the option of a bond package in order to make immediate cuts to the 2013 budget.

After announcing $500,000 needed to be cut from the fiscal year 2013 budget without eliminating city personnel, officials met to discuss the option of bonding to delay payments on upcoming projects.

Mayor Alan Casavant said bond talks are still in preliminary stages, but he said the package could cost anywhere between $4 million and $6 million. He said with a bond package, the council could easily cut $500,000 that was set aside in the budget for paving.

Casavant said the cost would not add anything to this year’s budget, but the city might start making payments by the end of fiscal year 2014. Payments for a bond start six months after its purchase date.

The bond will affect taxpayers through the mil rate, depending how much the city pays for the bond. For example, if the city pays for a $5 million bond, the mil rate will increase by 18 cents.

Casavant said bonds could be used for a number of city projects, including paving, fixing the clock tower on city hall, which could cost somewhere near $1.7 million, and purchasing a parcel of land that spans from Elm Street to Biddeford High School known as the Pate property.

If the council were to approve a bond package, it would be included on the ballot for the November election.

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