Joliet’s $3.5 million proposed loan to library called ‘investment’ but some council members question plan

Joliet officials on Monday debated whether a $3.5 million loan to the Joliet Public Library amounted to an investment for the city.

Finance Director Kevin Sing said the city would get the same rate of return as it does by investing in United States Treasury bonds.

Calling the loan “an investment,” Sing said at a City Council workshop meeting that “instead of buying a 20-year treasury or a CD, this is a loan to the library.”

The interest rate on the loan will be pegged to the rate for Treasury bonds at the time the transaction is finalized, which would have been 4.88% on Monday, Sing said.

The City Council will vote Tuesday on whether to make the loan, which would finance remodeling at the Black Road Branch.

A few council members, however, voiced concerns about the loan.

“It’s 20 years; this is what’s bothering me,” Councilwoman Jan Quillman said. “In 20 years, they’re going to need another new library.”

The term of the loan is 20 years, which Sing said is comparble to the city putting the same amount of money into a 20-year Treasury bond.

“It’s 20 years; this is what’s bothering me. In 20 years, they’re going to need another new library.”

—  Jan Quillman, Joliet city councilwoman

The money for the loan would come out of the city’s reserve funds.

Councilwoman Sherri Reardon called the transaction “a win-win for the entire city.”

“We’re not losing money,” she said. “We’re gaining by upgrading our library.”

The Joliet Public Library is a city library and not an independent library district. The library has its own board that oversees operation. But the board is appointed by the City Council, whose approval also is required for the library property tax levy.

Two other council members voiced support for the library loan while two others expressed concerns.

Councilman Larry Hug questioned whether the city would make a loan to the Plainfield Library District, which is the public library system for a large number of residents on the far West Side of Joliet.

“Are we setting a trend or a precedent?” Hug asked.

Joliet Public Library Executive Director Megan Millen told the council that the loan “will benefit the city” by improving library services.

The remodeling would take eight to 10 months, and the Black Road Branch would remain open during that time, Millen said.

Plans include a new children’s section, private study rooms, meeting space, and fresh paint and carpeting.