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Library officials outline $8.65 million borrowing plan for LaSalle renovation and new western branch; presenters say no tax increase
Summary
Library counsel and municipal advisors told the council the library adopted bond authorizations totaling up to $10.35 million (two series) but expect to issue approximately $8.65 million after $1.7 million in library equity; debt is structured so no tax increase is expected because prior bonds are maturing.
St. Joseph County Public Library officials and their municipal advisor briefed the council on a bond resolution intended to finance renovations to the LaSalle branch and construction of a new western branch.
Phil Fasenda (Barnes & Thornburg) summarized the bond authorizations: two series of bonds with maximum amounts of $4,000,000 and $6,350,000 (combined maximum $10,350,000), while Lisa Huntington of Baker Tilly said library equity of $1,700,000 and conservative assumptions about assessed-value growth mean the likely borrowing will be approximately $8,650,000. "The library intends to contribute $1,700,000 to total for both projects," Huntington said.
Presenters said the library's 2018 bonds are rolling off the budget in the current year, enabling replacement debt service without a tax-rate increase. Huntington estimated the new bonds would mature in less than 20 years and carry rates not to exceed 5.5% under the adopted resolution; presentation slides used a 5% interest assumption while noting market rates were currently somewhat lower.
Library Director Stephanie Murphy described a 10-year facilities master plan and cited heavy usage at LaSalle — "LaSalle ... sees 100 plus kids after school every day" — and said both branches would gain larger meeting rooms and study space. Councilors asked about debt-service timing and whether the projection showed increases; presenters said assessed-value growth assumptions and the maturing bonds support maintaining the same debt-service tax rate.
