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Library Board Passes Bond Resolution
(posted Oct 1)
The Speedway Public Library Board approved a resolution at its October
1 meeting for a not-to-exceed ten year $300,000 general obligation bond
for emergency roof repairs . The interest rate is expected to be eight
percent or less.
Attorney Robert Lutz said he conferred with Barnes and Thornburg attorney
Jim Gutting for his knowledge of municipal bonds. Lutz told the board that
the bond would be outside the levy and would be the preferred method of
financing. The other option was to finance the project with a five year
commercial note that would have been inside the tax levy. The levy is the
derived from property taxes and is the maximum that the board is authorized
to spend.
Library Director Darsi Bohr said the commercial note's monthly payment
would have been about $3,000. The payments would have been a strain on
cash flow that could have reduced library services.
The board still needs approval from the City County and Speedway Town Councils.
However, the board doesn't need Department of Local Government Finance
approval because it is less than $3 million.
The projected cost for roof repairs is $178,000. The financing fees were
estimated at $7,500. Lutz said that Barnes and Thornburg "associates
in training" would handle the bond at a fee lower than the normal
fee.
Lutz said the financing details would need to be worked out in a special
meeting, as well as performance bond and payment bond issues with the contractor.
A special fund needs to be created to hold the bond money, bond proceeds
cannot go into the general fund.
Board President Gene Markiewicz wanted the message to be clear to taxpayers
that the expenditure is for an emergency repair to the roof.
Bohr said if Speedway had received as much rain as Chicago did recently,
the library would now be closed.
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