Interestingly enough besides the capital debt that Gustafson talked about,
the library board has finally given us the operating deficity figures they
expect to occur at the newly remodeled branch libraries. It is reasonable to
expect remodeled libraries will have greater service needs given the fact
that Hosmer library went from 30,000 to 100,000 visits a year after
remodeling.
The increase in operating costs starts at $365,000 in 2003 with the
remodeling of one library and remps up to $2.6 million in 2011 after 12
libraries are renovated. When asked where the library board would get these
funds they didn't seem to have any idea where they would come from. If they
goe back out for a referendum, they will have to wait until the central
library is completed so they can show the public the results of the first
referendum, and this will occur about the same time the tax burden starts to
hit from that referendum.
On the issue of TIF districts don't count on all that money being available.
In our budget presentation from the MCDA we learned that finances will be
tight. We will have to start paying the debt service on NRP one and two. We
will just this year start paying the debt service on the $180 million spent
in the first ten years of NRP, while at the same time taking care of the
second ten years. I expect this debt service to potentially outlast the
decertification of the districts. But even if we do have
the money in the general fund we still will have to pay the 71 percent still
owing on the public works property tax infastructure gap as well as the
internal funds deficit. So I wouldn't start spending it before we have it.
Lisa McDonald
Tenth Ward Council Member
> -----Original Message-----
> From: [EMAIL PROTECTED] [SMTP:[EMAIL PROTECTED]]
> Sent: Monday, December 04, 2000 8:36 PM
> To: Multiple recipients of list
> Subject: Library Funding in the out years
>
> I would like to thank Bob Gustafson for his insights on the financial
> matters
> related to the Library Board. In his last post he talked about a
> shortfall
> in the years 2008 and 2009 that the City has said they will help address.
>
> All at once it dawned on me that the policy makers are already gearing up
> to
> spend all the money that will be released when the TIF districts are paid
> off
> in that time frame. That is, of course, if someone doesn't get the
> bright
> idea to extend the life of those districts. Could someone out there, are
> you
> listening Carol Becker, tell us how much will be coming in when those
> districts are decertified?
>
> Jan Del Calzo
> Lynnhurst
