LRB � RESEARCH AND ANALYSIS SECTION ANALYSIS

NOVEMBER 29, 2006 AGENDA                       ITEM 35, FILE 060993

FINANCE & PERSONNEL COMMITTEE                                  JAMES CARROLL  

File #060993 is a substitute resolution authorizing the sale and issuance of general obligation bonds for library improvements.

Background and Discussion

1. The Comptroller�s Office annually submits initial-borrowing resolutions for projects and programs approved in the adopted budget.

2. The resolution authorizes the sale of general obligation bonds in the amount of $790,000 for library improvements.

3. The borrowing provides funding for the following:

• Central Library Improvements Fund - $387,000 - This funding provides $280,000 for Interior Repairs, which includes painting, and carpeting areas that have constant traffic wear and $107,000 for maintenance and repair of exterior surfaces that include the Chicago brick, windows, lighting, roof and painted surfaces.  Funding also includes exterior masonry and stone repairs, and consultant work to develop specifications for a replacement roof.

• Central Library Improvements Fund-Mechanical Systems - $103,000 Funds will continue to replace the electrical transformers and building system controls to improve energy efficiency in heating and cooling systems.

• Neighborhood Library Improvements Fund - $300,000 � The funding provides $300,000 for exterior repairs of the branch libraries.  In 2007, Atkinson Library is scheduled to have the windows replaced to improve the natural daylighting, the appearance of the library, and reduce heating and cooling loads. 

Fiscal Impact 

Until the actual structuring of the debt issue is determined by the Public Debt Commission, details relating to the long-term fiscal impact will not be known. Depending on actual sale date in 2007, a maximum of 6 months interest would be incurred during the year.  If sold after July 1, 2007, there would be no fiscal impact in 2007. 

Cc:  Marianne Walsh       Prepared by:

Craig  Kammholz      Jim Carroll,  X8679   Mark Nicolini      LRB Research & Analysis

                W. Martin Morics                                                                                    November 22, 2006

                Richard Li