During yesterday’s Library Board of Trustees meeting, confusion with the City of Galesburg caused the group to table approving the matter.
The Library Board plans for the City to purchase 5-million dollars in Library debt at a relatively higher interest rate than with current investments.
A meeting with the Mayor and City Manager took place that, based on the discussion, was positive but Galesburg City staff had questions about the nature of the transaction.
Library Board Chair Martin Reichel tells WGIL the City staff is also concerned with the City’s liquidity, but there are things that can be done to manage that.
“For example, we could set it up so that there’s a number of [debt] certificates — not just one $5 million certificate, but maybe 10 $500,000 certificates,” Reichel said. “Then, those could be called in if the City realizes suddenly that they need some money, and it’s all tied up in the certificates.”
Before the Library can issue debt to be put toward a new Library, the matter needs City Council approval.
Reichel says he’s unsure which steps the City Council will take before, or even if they will approve the maneuver.