I. Council Action Requested.
Title
To approve the following proposed referendum question for a Special Town Meeting to be called and held on November 3, 2026, and to have the Council provide a recommendation:
QUESTION:
To see if the Town will vote to, 1.) authorize the issuance of general obligation bonds and/or notes in anticipation thereof in the aggregate principal amount of up to $19,500,000 to finance the costs of rehabilitating the Windham Middle School for use as a community center, including the costs of design, engineering, professional services, site preparation, construction, renovation, operating costs, and other improvements and furnishings as may be required in connection with the project, with the dates, maturities, denominations, interest rate(s), payments, premiums, calls for redemption, with or without premium, form, and other details of such borrowing to be determined by the Town Council; 2.) appropriate the proceeds of said bonds or bond anticipation notes for the foregoing project, plus an amount necessary to refund the interest payments on any bond anticipation notes issued for said purpose and any costs of issuance of the bonds and/or bond anticipation notes; 3.) authorize the Town Council to approve the execution of one or more agreements as may be necessary in connection with the foregoing project and borrowing for said project on terms and conditions as the Town Council deems reasonable and necessary; and 4.) appropriate up to $2,000,000 of the Town’s fund balance as the Town Council deems reasonable and necessary to reduce the borrowing amount and directly pay for costs of the project, operating costs of the project, and/or pay for debt service in connection with the project, subject to all applicable regulations related to the use of said funds and the proceeds of the bonds and/or notes issued.
Body
II. Basis for Council Action.
Council approval of this item is required because:
a. pursuant to Article VIII, Section 2 of the Charter, “any appropriation of twenty-five thousand dollars ($25,000) or more in addition to or supplementary to the annual budget appropriation; the issuance of bonds or notes, except notes in anticipation of taxes to be paid within the fiscal year in which issued; shall become effective only after it has been adopted at a Town Meeting by the vote of a majority of those present and entitled to vote at such meeting,”
b. the articles of business on the warrant for the proposed special meeting would appropriate an amount greater than twenty-five thousand dollars ($25,000) in addition to or supplementary to the annual budget recommendation and authorize the issuance of bonds or notes other than a note in anticipation of taxes to be paid within the fiscal year,
c. the provisions of 30-A M.R.S.A. § 2521 require that such meetings be called by a warrant signed by a majority of the “selectmen” (i.e. municipal officers),
d. the provisions of 30-A M.R.S.A. § 2528(5)(B) require that “[i]f a particular article to be voted on by secret ballot requests an appropriation of money by the municipality, the article, when printed in the warrant and on the ballot, must be accompanied by a recommendation of the municipal officers,” and
e. pursuant to Article II, Section 1 of the Charter, “[t]he Town Council, hereinafter called the ‘Council’, shall be and constitute the municipal officers of the Town.”
III. Issue Summary.