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Olseen: Let county carry full library bond

By Cliff Buchan
Forest Lake Times
Chisago County may yet move forward with a library bonding plan under a revised method crafted by Commissioner Rick Olseen.
The District 2 commissioner from Harris has stepped forward with a plan to issue $6.5 million in county-backed bonds to build three county-owned facilities in Wyoming, North Branch and Chisago Lakes. The issue will go to the county board for action on Sept. 3.
Olseen said this week he was offering the proposal as a way to get the library project back on track and done in an equitable way.
After a plan authored by County Board Chair Ben Montzka of Wyoming was tabled last month, Olseen, a first-year commissioner, said he wanted to ìjump start the process.î
Under the proposal, the county, through its Housing and Redevelopment Authority and Economic Development Authority, would issue up to $6.5 million in bonds for the construction. The HRA-EDA would also authorize a lease agreement with the county for the bond amount which would be apportioned to all taxpayers within the county and the East Central Regional Library System.
The county would maintain ownership of the buildings. East Central would provide books, staff and library services for each library.
The three host cities would be asked to provide land and maintenance and utilities, Olseen said.
ìIt seems more equitable,î Olseen said. ìThis way everybody in the county is a part except Taylors Falls.î
Taylors Falls is not part of the ECRL system and its property owners would not be taxed, Olseen said.
Not only is the plan more equitable, but it is a way to get the project moving, Olseen said.
ìThis way it will happen,î the commissioner said.
Under the Montzka plan, Olseen said he could foresee problems for the three host communities raising matching dollars to make the projects go. Montzka had proposed a $3 million county bonding program to upgrade library services in Chisago County.
Montzkaís plan would not have impacted the countyís bonding capacity because such projects fall outside the general tax levy, he said.
With the earlier proposal bogged down, Olseen said it was time to move. He said the savings in bond interest would be significant if the county moved now to capture low interest rates.
Olseen said he believes it makes sense to take advantage of the countywide tax capacity and strong bond rating to secure the funds for the construction.
Olseen said he will ask the countyís fiscal consultants to update what the bonds may cost taxpayers if issued.
Figures now in county hands indicate a $6.5 million issue would result in a $40 annual tax hike on a home with $200,000 market value. Olseen said he will also seek tax impact data on commercial and agriculture property.
Olseen said he is hopeful the county board will OK the plan on Sept. 3. If that happens, Olseen said the county could finalize an architect for the buildings and proceed with design development over the winter.
That could set the stage for spring construction. Bonds would likely be sold next year or perhaps in 2005, he said.
Olseen said it would be ideal if the county could streamline the plans and costs for each building but said local community input and desires would be valued factors in the planning process.
Olseen said he could see no objection if local communities tied in plans for community center or city hall expansion to the library facility. Such a plan is on the books in Wyoming.
Local community fund-raisers could continue with the dollars used for equipment extras or expanded operation hours, Olseen said.
According to data from a study by the ECRL, Olseen said the county would propose to build a 14,000 square foot library in North Branch, a 12,000 square foot facility in Chisago Lakes, and a 10,000 square foot building in Wyoming.
The Wyoming proposal has land donated by the city adjacent to the current municipal building.
The local committee working for the library has raised in the area of $50,000 with a sizeable donation by First State Bank of Wyoming the key seed money.
The plan also encourages future county support to Rush City when the ECRL determines a new or expanded library is needed there.

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