Library expansion plan banks on vote

There are several ways of looking at the proposal to increase property taxes for an $8.9 million plan to expand and renovate the Cape Girardeau Public Library.

One way is to look at the tax in isolation, which means that the portion of the property tax most city residents pay for the library will almost double. Another way is to look at the total property tax bill that will be due in December. The tax measure will stand alone in a special election Feb. 6.

Under the proposal to increase the property tax for the library by 15 cents per $100 of assessed value, library taxes on a home worth $120,000 would increase from the current $37.96 to $72.16.

This year's tax bills, however, will no longer include the Cape Special Road District property tax. If the library tax is approved, the tax bill on the home will fall by almost $27, to $1,182.49 from the current $1,209.42.

Complicating the situation is that not everyone who lives within Cape Girardeau city limits pays the library tax. Of the 14 voting precincts that will take part in the election, five include areas where residents pay the county library tax because the city annexed the land after a state law passed in 1965 blocked further expansion of library districts.

The northern boundary, for example, runs along Big Bend Road to the intersection of Lexington Avenue, then west to Northfield subdivision. Just west of Yorktown Drive, the boundary runs north, through the back yards between Yorktown Drive and Northbridge Drive.

The line runs right around the home of Betty Price at 1612 Greenbrier Drive. Although she doesn't use the library, Price said the extra tax "is a wonderful thing. I don't have any small children, but it would be worthwhile," Price said.

The proposed tax would raise about $630,000 annually, with most of the money dedicated to paying bonds that will be issued to fund the construction project. After 20 years, most of the tax would end, leaving 2 cents per $100 assessed valuation in place for future maintenance costs.

In addition to asking taxpayers for help, the library is pursuing private donations by selling naming rights for new rooms in the library or even the library itself. For example, if someone wants the library to be named after them or their business, the price tag is $1.5 million. To name the children's area, the cost will be $250,000.

If substantial private donations materialize, the total amount of bonds issued would be less, but the tax would remain the same. Library director Betty Martin noted in an interview that the tax issue doesn't include any funds for artwork to enhance the building or for new library materials such as books and audiovisual items.

If the tax is more than enough to make the bond payments, she said, the library board will look to make more purchases or expand the staff. "We could purchase some great materials and we could operate better," Martin said. "We tried to keep it at the current level of service, but we could expand service."

A bond attorney with Gilmore and Bell, the state's leading law firm on bonding issues, said the library could also have had lower financing charges if it had asked voters for a bond issue rather than a fixed tax rate. But exactly how much could be saved is hard to say, lawyer Bob Ballsrud said, because interest rates fluctuate daily.

But now is a good time for any kind of bond financing, he said. "We are still in a very low rate period. Though there have been some times in the past 12 months when rates were lower, historically rates are still very low today."

One difference between the library's proposal and a bond election is that in a bond election the tax rate would be set to raise only enough to make annual bond payments and could fluctuate year to year. But that would leave no money for maintaining the building, Martin said.

"We did it this way rather than have two different issues" on the ballot, Martin said. With two issues, passing one but not the other would create an awkward situation, she said.

The library projects that the expansion, which will double the library's size to 38,860 square feet, will cost about $200 per square foot for the new construction and about $100 per square foot for renovations.

Some people have questioned those costs to Mayor Jay Knudtson, who said he raised the issue with Martin but was satisfied that the prices were reasonable. "It is a high-tech renovation that is more expensive than a bare bones expansion or renovation," Knudtson said. "Based on the information I have, it seems to be within the scope of what these kind of additions costs."

Knudtson worries about whether Cape Girardeau residents may be weary of new taxes at election time. A countywide sales tax won approval by a bare margin in August, the city has won tax elections for public safety and transportation in recent years and now the library is asking for more.

"It is something that just needs to stand on the merits that are brought before voters," Knudtson said, adding that he will vote in favor of the tax.

rkeller@semissourian.com

335-6611, extension 126