City Opts to Fund New Library With Bond Sale, Reserves
When the city decided last year to build a new library, it put off working out details of how to pay for the $6.5-million facility.
After examining several options, the City Council voted this week to pay half of the construction costs with bonds and the rest with city reserves.
The council authorized $3.5 million in certificates of participation, a type of bond, and $3.5 million from reserves. The extra $500,000 will cover interest paid to those who buy the certificates.
“It will feel very good when I see holes being dug and walls going up,” Councilwoman Sherri M. Butterfield said. “But this feels like we’re really going forward--this is a firm commitment.”
City staff had recommended authorization of $5.1 million in bonds, rather than take money out of city reserves, but the council chose not to incur the extra debt.
“We should use some kind of balanced package that includes borrowing,” Butterfield said. “Because we do have sufficient reserves, I think it’s really a wiser choice.”
The city has about $18.5 million in its reserve fund.
Groundbreaking on the library is expected by September.
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