We have good news to report regarding the financial health of our building project! Through sound financial planning, the referendum approved for $12,900,000 by voters will only result in $12,245,000 payback, saving taxpayers an average of over 5% annually. Also, the bond will be paid in 19 years instead of 20, saving taxpayers even more.
After the overwhelming 67% approval of the referendum in April 2019, the library received a bond rating of AA (Stable Outlook) from Standard & Poor’s. A high bond rating helped to secure a better interest rate for the sale of our bonds to finance the building program. The bond sale happened on June 6, 2019 and we were thrilled to learn that investors were so confident in the library that they actually paid an additional amount, a premium, for our bonds. This resulted in extra funds for the library construction project, at no added cost to the library or taxpayers. In total, we received $1,740,000 in extra funding, providing us a total of $13,985,000 in bond-related money for the building addition and renovation.
The total budget for the library building expansion and renovation is approximately $14,340,000 (before any change orders or excesses over trade allowances). Again, taxpayers will only be responsible for $12,245,000, $655,000 less than the $12,900,000 approved with the April 2019 referendum and with one less year to pay on the bond.
To cover the difference between the total budget and the bond amount of $12,245,000, the library will use the bond premium mentioned above of $1,740,000, a matching grant toward the roof and HVAC of $125,000 from the State of Illinois, and $230,000 of accumulated savings over time through donations, memorials, and so on, that are designated specifically for a building project.
The library has always been fiscally responsible and has never operated in a deficit. Our longstanding financial prudence has resulted in a strong bond rating. In turn, that has resulted in the extra funds and secured the overall financial health for this project.
We appreciate the community’s support and look forward to the completion of this project in two phases. The addition should be completed around April of 2021 and then renovations will begin. Phase two renovations of the current building should be completed around December of 2021. A celebration will be planned for a time shortly after all work is completed.
Thank you for your continued understanding and patience during our construction project.
-Huntley Area Public Library District