Perkins trust expects roughly $500,000 from bonds; PIDA to issue loan for library renovation

Perkins Public Library Trust trustees discussed financing and next steps for the new library renovation at their June 5 meeting, including a plan for the Perkins Industrial Development Authority (PIDA) to issue bonds and an expected closing date of July 15 if investors purchase the offering.

The financing plan was described by Bob, a staff member, who said, “it's city money. So the city has to, do some agenda language to issue the bonds. Or actually, it'll be Perkins Industrial Development Authority that's gonna issue the bonds. We'll take care of that at the meeting on Tuesday with the expected closing on July 15, which is when the money would be available.” He added the available cash would be “in the neighborhood of 500,000 like we saw. I don't have the exact number yet.”

Trustees heard that investors typically underwrite municipal sales-tax-backed bonds by buying roughly 80% of the sales-tax revenue projected over the bond period, then deducting professional fees and interest. As one staff speaker explained, that process means “you take 80% of what the sales tax is expected to accrue over the period of the sales tax... that's the starting point.” The trust was told the 80% figure, minus legal, financial and other fees, yields the roughly $500,000 figure cited to the board.

Trustees also reviewed other known funding sources that will be available for the project: about $70,000 already in the trust’s account and a $50,000 grant from T-Mobile. A staff member flagged the T-Mobile funds as time-sensitive: “We also have $50,000 from T Mobile that really needs to be spent or they're gonna jerk it away.” Trustees discussed whether the T‑Mobile money could be combined into the project lump sum or must be spent for the original exterior-finishing purpose stated in the grant.

On procurement, trustees discussed state competitive-bidding thresholds. The transcript records a question to the attorney about whether the Competitive Bidding Act’s $100,000 threshold falls to $50,000 if the trust acts as the construction manager; that distinction matters because contracts above the applicable threshold must be formally advertised. The group noted that for procurements under $50,000 they would still obtain three written quotes for each trade.

Board members expressed a preference for retaining more direct control and saving costs by acting as their own construction manager and using multiple small scopes and donated labor where possible. Trustees agreed to seek three bids or quotes for exterior trades—particularly the north wall—to determine how far available funds will go and to preserve the T‑Mobile grant by moving on any eligible work as soon as practicable.

No formal financing vote was taken at the meeting; the board discussed next steps and expected the city commission and PIDA to complete required lease and bond documents at the upcoming city meeting. Speakers said if the bond offering does not attract sufficient investor interest on the planned timeline, the bond team would re-market the issue at a later time.

Trustees also discussed timing and bookkeeping: some purchases might be delayed until July 1 to keep FY2025 audit and purchase-order records cleaner, while other urgent work tied to the T‑Mobile grant could proceed earlier if funds were available.