The ever-fluctuating and much-debated cost of a proposed Galesburg community center could soon move a step closer to the unofficial “soft cap” of $2.5 million suggested by a majority of the City Council.
The City Council on Monday will be asked to approve shifting half of the $5 million in bonds dedicated in March 2023 to a community center to various road and infrastructure projects in Galesburg.
If the amended ordinance to the “$5,005,000 General Obligation Bonds, Series 2023” is passed Monday, the new allocation for funds would be:
- Community Center costs $2,500,000
- Asphalt resurfacing projects $1,950,000
- Irwin Street storm sewer and street reconstruction, $550,000
When approved earlier this year, the entire $5 million in bonds were designated to go to a community center.
In the bond issue summary, the original purpose of the “$5,005,000 General Obligation Bonds, Series 2023” was:
Bond proceeds will be used to finance the acquisition, construction, or renovation of an existing facility for the purpose of a community center and to pay the costs of issuing the Bonds. The community center is estimated to cost $7.3M to finance the Project. The City expects to use $5.3M from bond proceeds, $1.0M which has been set aside in the Planning Fund and $1.0M from contributions, donations, naming rights, use of excess funds and/or short term loan from other City funds.
Amending the original ordinance and shifting a portion of bonds to projects other than the community center requires approval by bond counsel.
Mayor: Community center and roads both public priorities
Galesburg Mayor Peter Schwartzman tells WGIL he believes the city could have found money for roads next year.
“The city’s finances are in very good shape, thanks to some very sound management over many years,” Schwartzman said. “The last three years have seen revenues outpace expenses by millions each year. Thus, we have money to invest in roads next year, something the community survey indicated was a priority.
“A community center was another priority clarified. I believe the task force is working hard to make a recommendation that will be spectacular yet affordable given the monies that are still available after the road initiative is covered.”
The mayor added, “Additional outside money will also likely come into play, as is often is the case with bold endeavors, case in point our future magnificent library.”
While the shifting of more funds away from a community center was presented to aldermen on first reading at the Oct. 16 City Council meeting, the topic was further discussed at Monday’s City Council work session dealing with the 2024 budget and capital improvement plan.
Interim City Manager John Schlaf said Monday the city currently has approximately $5.3 million set aside for use of a community center, but noted that number could shrink to around $3 million if the Council approves allocating nearly $2.5 in general obligation bonds to roadway projects.
Directors of Community Development, Public Works and Parks and Recreation gave presentations on current and future projects at Monday’s work session.
Schlaf noted Monday that price tags for a community center have ranged from $2.5 million to more than $7 million as the project has been discussed in recent months.
“The community center falls within Parks and Recreation, and since they were giving a presentation during the budget and capital improvement plan work session (Monday), we felt it was important to at least touch on the highlights of where it stands right at this point,” Schlaf said.
“So (the $5.3 million) is the amount of money that we as a city currently have in the bank at this point that could be used for a community center. We thought it was important to solidify what the numbers are as far as real money, in the bank, at this time.”
City awaits approval of federal and state pledges
Schlaf said the $5.3 million does not include nearly $1 million in potential federal funds pledged by U.S. Senate Majority Whip Dick Durbin (D-IL) and U.S. Senator Tammy Duckworth (D-IL) and now facing approval by the Senate Appropriations Committee. He said the state of Illinois also has pledged $225,000, but that too remains a pledge at this point.
The city, according to Schlaf, also has has another $1 million in the bank that were originally ARPA funds, plus a $10,000 grant from Gates (Rubber) Industrial Foundation.
“Money that we’ve talked about but is not in the bank is the million dollars in potential federal money and $225,000 in potential state money,” Schlaf said. “We look at those as a pledge — it could come down the line, but currently that money is not in the bank.”
The “soft cap” of $2.5 million has been a frequent topic of debate among some members of the Community Center Task Force.
“We felt it was important to at least touch on the highlights of where it stands right at this point,” Schlaf said. “And we wanted to be respectful to the work of the task force, so we made that presentation of where we stand during the work session.
Chairman: Task force focusing on programs and needs, not cost
Schlaf said he also recently discussed the funding possibilities with Community Center Task Force Chairman Tony Franklin.
Franklin tells WGIL, “(Schlaf) explained what money is available, but that’s not to say there wouldn’t be additional funds available down the road. Basically, it was here are the funds that are currently on hand.
“We’ll put our findings in the hands of city government and roll from there.” — Tony Franklin, chairman of the Community Center Task Force
“Our focus is more on the needs for a community center, what the programs should be, and identifying different spaces. So, I really see the role of financing coming from the city. I don’t see money or financing being a major focus of the task force, per say.
“We’ll put our findings in the hands of city government and roll from there.”
Partner with the Y? New building at H.T. Custer? Here are latest Community Center ideas
The final two meetings of the Community Task Force are Tuesday and Nov. 21, both at Carl Sandburg College Crist Student Center.
Franklin said task force members have been asked to bring their top 3 site recommendations and 10 programing possibilities to be discussed at the next meeting Tuesday.
“The focus of our final two meetings will be to fine tune the findings that will be in our final report to the City Council,” he said.