Goshen Public Library & Historical Society | 203 Main St Goshen, NY 10924 | Phone: 845.294.6606 | Fax: 845.294.7158 | RCLS Member
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How much will the proposed new library cost?
By plnkh | February 7, 2008
The proposed new library will be funded through the Dormitory Authority of the State of New York (DASNY). The total project cost (the maximum debt to be incurred) being put before the voters is $19,675,000. This figure includes the land, site development, construction, professional services (architecture, engineering, construction management, legal), furniture and equipment, moving, in 2009 (the year in which construction is projected to begin) dollars as well as the bonding costs. Anticipated cost escalation of 8 % per year is also included. The budget for the project was developed by Wolf and Company - Construction Cost and Management Consultants.
The Library, which has no legal authority either to collect it’s own taxes, or to sell it’s own bonds, has chosen to work through the Dormitory Authority (a state agency established to oversee construction projects for colleges, and not-for-profits) because it allows for bonding over 30 years at interest rates comparable to those available to the school district; interest on proceeds of the bond sale invested prior to payout will be payable to the library project; and the school district, coping with it’s own growth issues, is absolved of any involvement in the library project.
The debt service will be spread over 30 years. The maximum annual tax levy for the debt service (principal and interest) being put before the voters is $1,350,000. This translates into a maximum tax payment of approximately $194 per year for a homeowner in the Goshen Central School District whose house has a fair market value of $400,000. This cost for the debt service will be added to the current tax levy, so this same home owner, now paying a library tax of $164, would pay a hypothetical total library tax of $358 per year. A projected operating budget for the new building is in development and will be made available shortly.
The Library Board realizes that this is a big commitment on the part of the community. This once in a century opportunity to invest in Goshen’s future will enable the Library to fulfill its commitment to provide comprhensive library services in an energy-efficient, cost effective, ADA compliant, safe facility.
The Library is also currently engaged in a capital campaign to help reduce the amount of debt to be incurred for the project. Private donors and grant sources are being identified and contacted . Funds in hand before the sale of the bonds will be used to reduce the amount of the debt, unless specifically earmarked for enhancements to the project. Funds received when the building is complete can be used to reduce the tax levy for the debt service if not specifically earmarked for enhancements to the project.
For the most current information on the library project visit the Library’s website goshenpubliclibrary.org.
Topics: Building |
