Staff Writer 

In June, South Portland voters may add $8 million to the city’s debt. Of the proposed bonds, $5 million is scheduled for maintenance projects at three schools and $3 million to upgrade a pump station tucked behind Wild Willy’s restaurant on Western Avenue. 

City Manager Jim Gailey said the city would like to borrow the funds from the Maine Municipal Bond Bank, even though the city has access to a sewer user fee fund totaling more than $4 million set aside specifically for the pump station project. South Portland Finance Director Greg L’Heureux said voter approval of the $3 million bond would enable to city to leave enough money in the sewer user account to pay for  three and four-year projects down the road. 

“What we’re telling [voters] is pass this so it won’t cost us anything?” Councilor Linda Boudreau asked of the $3 million bond proposal. “They’re going to see the $5 million school bond, then this – and if it’s confusing for councilors, forget it.”

For L’Heureux, borrowing the $3 million is a “no-brainer.”

“Councilor [Jim] Soule told the school to put itself in a position to receive funds if they became available,” L’Heureux said. “We kind of took that to heart and decided to do the same from the city’s side.”

With federal stimulus money funding other projects that previously competed for similar funding, L’Heureux said the Long Creek pump station has been bumped to “second in line” to receive federal funding. To be eligible for the funds, he said the city must have voter approval. 

“Our fear is that the money will become available and we won’t have all our ducks in a row to receive it,” he said. 

L’Heureux said the decision is easy for him to endorse since funds will be funneled to the city through the Maine Municipal Bond Bank at a zero percent interest rate. Also, he said more than 25 percent of the total debt will not have to be repaid. 

“If there’s a no-brainer on the ballot, this is it,” he said. 

To expedite the borrowing process, L’Heureux said voters will also be asked to approve a change to the city charter. The amendment will grant the city council power to bypass a public bid process when deciding which bank to borrow the funding from. 

“We could go out and advertise to banks for this bond, but we’re only going to get one bidder, and it will be the Maine Municipal Bond Bank with an interest rate of zero percent,” L’Heureux said. “The whole advertising process can cost $30,000 to advertise. We may get a lower interest rate, but not when it makes sense to use the [Maine Municipal Bond Bank].”

When asked how old the pump station is, Water Resource Protection Director Patrick Cloutier can only say it was built “a number of years ago.”

“It’s pretty old,” he said. “It collects water from the sewer system underneath the Maine Mall, Redbank and all of Western Avenue.”

Cloutier said the station has been unable to keep up with demands of the sewer system, which results in sewage and storm water overflowing into the marine estuary portion of the Long Creek watershed. Although city engineers are still in the preliminary, data-gathering stages of designing an upgraded pump station, he said it will most likely double the capacity of the facility.

How long before the proposed station will reach capacity given the growth rate of the surrounding area?

“If I had a crystal ball, I’d be able to answer that,” Cloutier said. “This is all very preliminary.”

Last week, the council unanimously approved a first reading to add the bond to the June ballot. 

“Best case scenario is we might be eligible for $20 million,” Mayor Tom Blake said. “Worst case scenario is we don’t get any money and we still need to do the project.”