Maine Municipal Bond Bank – Augusta, ME

Financing Maine’s Communities

The Maine Municipal Bond Bank (MMBB) is an independent agency and instrumentality of the State of Maine, established to provide low-cost capital financing to local governmental entities. Located on Community Drive in Augusta, the Bond Bank is not a commercial bank for individuals; rather, it is a financial powerhouse for the public sector. Its mission is to make borrowing easier and more affordable for cities, towns, school systems, water and sewer districts, and other eligible borrowers. By pooling the financing needs of multiple local governments into larger bond issues, the MMBB leverages its high investment-grade credit rating (often AA+ or AAA) to secure interest rates that small towns could rarely achieve on their own.

Core Financial Programs

The MMBB operates several programs designed to address specific infrastructure needs across the state:

• General Bond Resolution Program: This is the bank’s flagship program, typically issuing bonds twice a year (Spring and Fall). It allows municipalities to finance a wide range of capital projects, from road construction and school renovations to the purchase of fire trucks and public works equipment.
• Clean Water and Drinking Water State Revolving Funds (SRF): In partnership with the Maine Department of Environmental Protection and the Maine Department of Health and Human Services, the Bond Bank manages these revolving loan funds. They provide extremely low-interest loans (sometimes with principal forgiveness) for critical water infrastructure and safe drinking water projects.
• School Revolving Renovation Fund: This program offers zero-interest loans and grants to school administrative units for necessary repairs and health and safety upgrades, ensuring that Maine’s students have safe learning environments.

Benefits for Municipalities

The Bond Bank’s structure provides significant administrative and financial relief to local officials.

Cost Savings

By issuing tax-exempt bonds on a large scale, the MMBB reduces the ’costs of issuance’—such as legal fees, rating agency fees, and printing costs—that would otherwise burden individual towns.

Technical Assistance

The staff at the Bond Bank guides local treasurers and town managers through the complex borrowing process, offering expertise on debt management and compliance with federal tax laws.

Location and Operations

The Maine Municipal Bond Bank is located in a professional office park off Civic Center Drive, near the University of Maine at Augusta.

Access

The facility functions primarily as an administrative office. While it is open to the public, most interactions with municipal clients occur via phone, email, or scheduled meetings rather than walk-in traffic.

Governance

The Bank is overseen by a Board of Commissioners appointed by the Governor, ensuring that its strategic direction aligns with the state’s broader economic and community development goals.