New Corbin Library project faces funding uncertainties

Officials will celebrate the start of construction on a new Corbin Public Library next Monday, but exactly how the higher-than-expected bill for construction will be paid is still up in the air.

Corbin Library Board Chairperson Diane Mitchell said this week that the board recently borrowed an additional $200,000 to pay for the cost of construction, bringing the total indebtedness for the project to $900,000. The move came following a series of meeting at which board members were able to slash about $50,000 off of the $873,000 project.

"We thought in the long run we’d be better off to go ahead and try to build the building that we dreamed," Mitchell said. "What we are hoping is that the Corbin Community will help us put some furnishings and all in it."

Mitchell said shelves, tables and other furnishings from the current library building will have to be used in the new 12,000 square foot facility when it is complete.

The Corbin Library Board purchased the former Vintage House Restaurant Building for $300,000 last year to use as the new library. Plans are to sell the current building for $200,000. Mitchell would not say who intends to buy the library’s current facility.
Planners hit a snag when bids for renovations at the new library site more than doubled the $400,000 set aside for construction costs.

According to the Corbin Public Library’s 2009-10 fiscal year budget, the library has a total income of $268,000. There are line item expenses in the budget for construction expenses ($40,100) and mortgage payments ($30,000). Mitchell said the Library Board was relying on a pledge from the City of Corbin to provide a larger percentage of property tax revenue in order to help pay down impending $900,000 debt. Last year, Corbin City Manager Bill Ed Cannon said the city budget contained more money for the Library, but City Collector Dorotha Weber said Tuesday the Library is slated to receive only six percent of the city’s portion of property tax collections – the same percentage it has received for at least the past 18 years. About 68 percent of the property taxes collected by the city goes to the Corbin Independent School District. The library would get six percent of the remainder.

The city did raise property tax rates slightly, allowing it to collect four percent more this year in actual dollars, often called the "compensating rate," than the previous fiscal year. Last year, the city transferred $75,912.36 to the Library Board for operation of the facility. The board budgeted $105,000 in tax revenue from the city for the current fiscal year. But if four percent more were due the board this year, then the increase would result in only a $3,200 revenue bump. Mitchell said city leaders had promised around $40,000.

Mitchell said this week she was somewhat concerned about funding because property tax transfers to the Library Board were only about even with the same time last year, and are maybe even a little lower.

"We are not getting in the tax money we have been getting in previously," Mitchell said. "We are a little bit concerned about it, but they assure us it is going to be OK."

Corbin Mayor Willard McBurney said he feels property tax collections are down a bit this year because of the economy. Regardless, he said once the new library building is occupied and in use, the city would make good on its promise to help with debt service payments.

"They have taken on so much and we want them to have the library," McBurney said. "To keep the new library functional at all, it will just have to be something we do. We will have to take a look at it."

McBurney said he expects the city will give around $40,000 to the Library Board to help pay for the new library. He said city leaders will likely review the stipend annually and plan only to help pay for the cost of the building, and would not agree to fund any other expenses.

Corbin City Manager Bill Ed Cannon said city leaders have discussed assisting with debt service on the new library.

"It’s definitely something we are looking at," Cannon said.

McBurney said he would like to see the Whitley County Library System offer more money to the Corbin Public Library annually. Currently, Whitley County gives $150,000 of the county’s library tax.

All money for construction of the new library was borrowed from Hometown Bank on a low interest loan program specifically geared toward public projects, Mitchell said.

In any event, the Library Board has no money to pay for furnishings in the new building. Mitchell said she is asking for donations from the community to help with that part of the project.

"I’ve lived in this community all my life … I think the library in any area is extremely important for all people," Mitchell said. "It’s probably the only place I can think of where people can make a donation that will not be limited. It will help all people; any race, any religion, any age group … it helps them all. It’s a wonderful place you can put money if you have it and if you can."

Mitchell said she is working with Corbin Tourism and Main Street officials to hopefully secure some additional funding for an outdoor reading café on the side of the building that faces Roy Kidd Ave.

"We would like to have a real nice wrought iron fence there and make a sidewalk café where people could read and work with their computers," Mitchell said. "I think Tourism could help with something like that. We are in the Renaissance district."

The official groundbreaking ceremony for the new library will be held Monday, March 29 at 11:00 a.m. at the new library building, located at the corner of Roy Kidd Ave. and Laurel Ave. The public is invited to attend.