The Warsaw Community Public Library’s Board of Trustees heard from Ice Miller and Baker Tilly representatives about bonds during its meeting Monday.
Ice Miller is a full-service law firm and Baker Tilly is an advisory, tax and assurance firm.
WCPL is considering either renovations at the current building or relocating to a nearby area. Recently, library and city officials toured the former Marsh building near downtown Warsaw to determine if it’s a viable area for WCPL to utilize.
No final decision has been made on if the library will repair its current building or relocate elsewhere.
In March, the library formed a renovation exploration committee to look at WCPL’s options and report updates to the board every month.
Kristin McClellan, a partner in Ice Miller’s Municipal Finance Group; Sarah Correll, an attorney in Ice Miller’s Municipal Finance Practice; and Lisa Huntington, a manager at Baker Tilly, attended the board’s meeting to explain the bond process.
Baker Tilly would function as the library’s financial advisor, with Ice Miller acting as bond counsel.
Huntington said part of Baker Tilly’s work includes completing a feasibility study, determining the bond repayment process and analyzing any tax impacts.
McClellan said WCPL could either pursue a general obligation bond or a lease bond. She told the board GO bonds are quicker and cheaper, taking about three to four months to get through approval processes under state law.
According to Huntington, WCPL’s general obligation bonding capacity is one-third multiplied by 2% of the library’s certified net assessed value. For 2024, that limit is about $14.2 million.
“That really gives you some great flexibility because, (since) you don’t have any general obligation debt outstanding now, you can issue up to that full limit without having to take additional steps,” said Huntington.
McClellan noted the significance of that since most libraries the firm consults with usually work with below $1 million for their assessed valuation.
For the issuance of a bond, since library boards are appointed, the library would need the approval of a fiscal body. In WCPL’s case, that would be the Warsaw Common Council.
McClellan and Huntington both encouraged the board’s renovation committee members to attend the city council meetings and prepare information showing aspects such as the amount of patrons WCPL serves and programming the library offers.
Huntington presented two different scenarios for the library’s potential bond, with the first being an assumed borrowing amount of $11,265,000, with a 5-cent tax rate increase. The second estimate was around $8,235,000, with a 4-cent tax rate increase. Both would have 20-year repayment terms.
Director Heather Barron said she and Facilities Director Jim Price would meet with the library’s renovation committee in the next couple weeks to discuss possible architecture firms for the library to work with.
Price also put together a list of estimated costs for various repairs the library’s current location needs, with the total amount ranging from about $850,000 to $1.073 million.
In other business, the board was presented with minor changes to the board’s by-laws, as well as a new photography and videography policy.
These documents will be voted on at the board’s next meeting June 10.