2008-08-12 The Risk of Borrowing $25 Million
The Library Board proposes to put a referendum on the November Ballot for $25 Million to build a brand new library at Park and Ardmore. The plans are well-known to folks who follow the library, and I would encourage the rest of you to become familiar with the proposal. There are indeed good reasons to think about a new library. The Library Board is to be commended for their efforts to plan for the future needs of Villa Park.
The Library in Villa Park is what is called a "Discrete Component Unit" of the Village, which is as opposed to being an independent Library District. If the Library Board were an independent district then it could put the referendum on the ballot on its own. However, being a discrete component unit, the Library Board must work through the Village Board. If the referendum should pass, then it will be the Village of Villa Park borrowing the $25 Million, and therefore your Village Board is called upon to vote whether or not to place a referendum on the ballot.
In making this decision the Village Board must consider the Village's borrowing abilities and credit rating. The Village's borrowing power is a multiple of the total valuation of the whole Village. This is known aas the "non-home-rule debt ceiling". Our debt ceiling is currently about $58 Million. We currently have under $15 Million in debt, and this low debt ratio contributes to the excellent credit rating that we currently enjoy.
We have redevelopment efforts currently underway for which we certainly will have to borrow money if we are to see them through. We have recently acquired properties for redevelopment projects in the North Ave TIF and in the Metra TOD Area, and we look forward to more in the years to come. These redevelopment efforts were begun by previous boards and we must ensure that we have the necessary borrowing power to see them through.
Thus, borrowing $25 Million for a new library is a big risk because it would leave us with a lower credit rating and a much lower debt ceiling of roughly $20 Million. For my part, I think we should wait to build a new library and instead keep our focus on the redevelopment efforts. Should the referendum appear on the ballot, I will vote no in November for that reason.
Also, in reference to Mr. DeTomaso's suggestion of a multipurpose center on the north side, please note this piece that I wrote waaaay back in Spring of 2007.
;^)2007-02-22 In favor of moving the library to the TOD
At the Candidates' Forum on Feb 22, Eric Mainz suggested, and I completely agree, that we should consider moving the library to the TOD area. The library would be a terrific anchor property for the TOD, and it would manifest our commitment to the TOD. It would be a decisive step forward.
It's also been suggested to me that the library should be placed near Willowbrook High School. That is also a very good idea. Willowbrook has lots of space, and putting the library there would make it easily accessible to the students, certainly a great idea.
Any decisions in this area should take into account the benefit of using the library to move the TOD forward quickly and decisively. I believe that benefit is enormous because we already are 10-20 years behind the curve on redeveloping our north side.
In either case, it's essential that we secure a commitment to the existing property, so that something good happens there rather than just leaving a hole. Some have suggested to me that St. Alexander's would be eager to acquire that property. If that were not the case, then a neighbor-friendly mixed retail development should go in its place.