PRINCETON — Princeton Public Library's board of trustees plans to ask permission from the City of Princeton to issue $4.5 million in general obligation bonds to help finance a 7,800 square feet library expansion.
The two-level addition on the east side of the existing library has been under study by the library board for months, and members are looking at financing options. Ryan Fetters, a financial consultant with H.J. Umbaugh & Associates, told the Princeton Common Council Monday night that the library board is applying for a grant and has cash on hand. To accomplish the full project, the board would need to issue the $4.5 million in general obligation bonds, secured by the property taxes paid by the owners of property within the library district.
The bond issue would be separate from the city, Fetters reported. The library's taxing power based on a net assessed valuation of $748 million would allow library trustees to issue up to $4.98 million in bonds.
The board, which has no other outstanding debt, is considering the $4.5 million bond issue, repayable over 19 years in $359,000 annual payments raised through a 4 1/2 cent levy per $100 assessed valuation.
The project would mean the owner of a $98,500 home would pay about $14.50 more per year in property taxes, according to projections, said Fetter. The cost would be about 84 cents per acre per year for agricultural property and about $45.60 for commercial property valued at $100,000.
Fetter said the library board's attorney, J. Robert Kinkle, will make the formal request of the council at their next meeting in two weeks.