Finances 2

$4.5 budget impasse loan

DateDraw on $4.5 million
construction loan
for construction costs
InterestTotalBalance Remaining
06/08/16 $3,574.84$3,574.84
08/26/16$536,853.39 $536,853.39

The State of Illinois has a contract with the DeKalb Public Library to pay the DKPL $11.6 million. The first two distributions occurred on schedule at the 30% mark and the 60% mark. $6,000,000 was the total of the two checks.

The State of Illinois owe us the remaining amount of $4.5. This is bond money—the bonds were sold and this money is available once a budget is passed.

To save the taxpayers money in the long run, the library borrowed the $4.5 needed for completion and will have expended that $4.5 amount of money by completion of the project in summer of 2016.

We are still waiting for the State to pass a budget in which the bond money can be “re-allocated” to the three libraries that are still due funds. All three, Aurora, DeKalb, Chicago Public had multi-year projects.

Abatement Procedure:
The money will be abated back to the taxpayers in the following manner ;
Payment to the banks of the $4.5.

Treasurer Christine Johnson: The money is received, the Library would reduce their levy next year.

Attorney Phil Lenzini:
1. As of current circumstances (i.e. no budget, no special bill adopted permitting payment of the obligation), the tax will appear on the tax bills when printed later this year (i.e. the $500,000 we are focused on).

2. The way the abatement actually works always in part depends on the time you are talking about. For instance, IF the states money comes before the tax bills are printed this year (highly unlikely as that will be any day now), the $500,000 is merely subtracted out and the balance of the levy is extended. If it comes between now and next year’s tax bills (i.e. the taxpayers will have already paid that “first batch” of $500,000) then next year’s levy will either not include that “second” $500,000 or if already approved and filed that levy would be abated the $500,000 PLUS assuming the state’s payment more than paid off the bank (and left almost $500,000 NOT owed, because of the $500,000 in taxes which was paid in the interim) THEN the levy can be ALSO reduced/abated THAT second $500,000 in order that the taxpayers effectively get back their money.