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BUILDING FOR THE FUTURE: The Campaign For Lower Merion Libraries

                           

Funding the Lower Merion Library's Capital Improvement Projects

There are two funding partners for the library renovation projects: The Lower Merion Township, and the Lower Merion Library Foundation.

The Township provides funding as part of the Capital Improvement Program, or CIP. The CIP is a set of Township-specific public improvement projects which the Township undertakes each year. Examples of CIP projects include bridge repairs, sidewalk/street improvements, streetlight upgrades, and playground safety projects. All of the Township's CIP projects (including library renovations) are funded with the proceeds from the sale of a general obligation bond (that is to say, a sale of a 20-year term loan). The Township's Finance Department announces a sale of the bond, and then private financial institutions and other investment entities submit bids to win the right to become the Township's bondholder. The bidder who submits the lowest interest rate on the Township's bond wins the right to be the bondholder. After the sale, the Township receives the principal and then transfers the money to the accounts which will be used to pay for the library renovation and other CIP project costs.*

To assist the Township in funding the library renovations, the Lower Merion Library Foundation is sponsoring a Capital Campaign called Building For The Future: The Campaign For Lower Merion Libraries. The Campaign aims to raise $5 to $7 million from private donors and foundations to help offset the estimated $23 million cost to complete all of the library renovation projects. Donations can be restricted to one library project, or can be unrestricted and be applied to any of the projects. The Foundation has organized a Capital Campaign Committee (chaired by former Lower Merion Commissoner Charlie Bloom) and has hired Schultz & Williams, a fundraising consultant firm, to help manage the campaign. For more information, the Capital Campaign Office can be reached at (610) 645 - 6123.

In addition to these efforts, the Department of Libraries staff are researching federal, state, and private foundation grants as potential funding opportunities for the renovation projects.

Here are the current estimated 'order of magnitude' costs of each Library capital project (**except for Ludington) and the amount of Campaign contributions the Lower Merion Library Foundation hopes to raise in support of each project. The Campaign is also seeking funds to support a system-wide technology upgrade in all six libraries. Called Radio Frequency Identification (RFID) this system offers powerful and efficient methods for implementing everything from self-checkout to security systems. Costs for RFID are included in each project. The Campaign is hoping to raise $250,000 toward this important service goal.

Ardmore Library

Estimated Cost: $1.1 million

Anticipated Contributions from the Capital Campaign: $200,000

Bala Cynwyd Library

Estimated Cost: $6.3 million

Anticipated Contributions from the Capital Campaign: $1.1 million

Belmont Hills Library

Estimated Cost: $1.6 million

Anticipated Contributions from the Capital Campaign: $350,000

Gladwyne Library

Estimated Cost: $1.3 million

Anticipated Contributions from the Capital Campaign: $250,000

Ludington Library

Estimated Cost: $9.1 million**

Anticipated Contributions from the Capital Campaign: $2.3 million

Penn Wynne Library

Estimated Cost: $2.7 million

Anticipated Contributions from the Capital Campaign: $550,000

*Except for sewer projects, which are paid back through the Sanitary Sewer fund, the principal and the interest for Township's bonds are paid back through the annual operating budget. In any given year, the Township spends almost $10 million paying back principal and interest on the bond sales made to fund capital projects in various years. This makes debt service one of the Township's largest expenditures. A schedule of these long-term debt obligations appears in the 2010 Township Proposed Budget under Department 82, the “Sinking Fund.”

**This figure is the revised project cost estimate as approved by the Lower Merion Board of Commissioners on November 18, 2009.

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© 2009 Lower Merion Library System
Last revised: December 11, 2009
Send Comments To: LMLS Administration