Monticello – Union Township Library looks at $6.9 million renovation

 

The county council heard a presentation by individuals representing the Monticello – Union Township Library regarding their request for a bond issue to renovate, repair and expand the library building. Library Director Candace Wells said, “We are here this morning because our building needs a lot of renovations done.”

She said there are a lot of issues including the roof and HVAC system. She said that recently another ceiling tile had fallen down and she worries about the things they can’t see. Library board members, library managers, the bond counsel and financial advisors were present tor the presentation and request. Wells said, “That just shows our need and how important this is to us.”

She explained the process started a year ago and she reminded the council she had come to them then about the status of the building.

An assessment of the building was done and then Ice Miller, the bond counsel, was brought in. Two public meetings were held in February that were properly advertised and then they waited the required 30 days to see if anyone would file a petition against the bond issuance. None was received. The last step is to have the county council approve a resolution for the bond.

Ice Miller representatives explained since the library board is an appointed board, they have to go to a fiscal body for approval and the county council is that fiscal body. It is different because the county is not liable for the debt; the debt belongs to the library.

Councilman Art Anderson said there were issues with the building right after it was built and it should have been taken care of while under warranty. He said that was the reason for all the leaks. “You’ve had them since day one,” he said. He asked why nothing was done about it then. Answering his own question, he said too many people are on boards and they just don’t say anything.

Baker Tilley, a municipal CPA firm, had a representative, Lacey Vachon, who explained the financial side of the issue. The amount for the proposed bonds is a little over $6.9 million, estimating the proceeds to be a little over $6.7 million to be repaid over 10 years with an estimated interest cost of just over $2.5 million. Vachon said “We’re using conservative interest rates. We’re using a 6% interest rate.” She said the maximum annual payment is $965,000.

A service tax will be used to pay for the bond and is estimated to add “a little over” 10 cents to property taxes. Vachon illustrated the effect using the median home value of $153,000, with the monthly impact at a little over $6 and annually a little over $72. For farmland, the estimated increase would be a little over $20/month per 100 acres and annually, a little over $240.

She said the only revenue a library has is a property tax levy.

For commercial property, the estimated monthly impact would be a little over $105 annually. She stressed that this is based on the 6% interest rate. This increase will affect property in the library’s district, which is Union Township.

With no public comment, the council proceeded with the vote to adopt the resolution with a vote of 6-0 in favor.