Jasper Library reveals property tax costs for new library

What will the Jasper Public Library referendum cost the taxpayers of the City of Jasper and Bainbridge Township?

After approving an agreement with Ken and Paul Sternberg to purchase the former Hoosier Desk property for $864,000, the board discussed the property tax impact associated with the referendum to turn the building into a cultural center involving the Jasper Community Arts Commission and City Properties Group.

A report compiled by Umbaugh & Associates revealed several costs depending on the type of property, the assessed value of the property and the life of the bond (i.e. 10, 15 or 19 years) based on a $6.5 million bond.

According to the U.S. Census Bureau, the median home value in Dubois County is $132,900. At this market value minus property tax exemptions, the referendum would increase property taxes on the home $3.56 a month for a 10-year bond, $2.69 a month for a 15-year bond and $2.36 for a 19-year bond.

Commercial properties do not qualify for the same exemptions, so the rates for $100,000 of assessed value of rental or commercial property would cost $6.58 per month for a 10-year bond, $4.98 per month for a 15-year bond and $4.35 per month for a 19-year bond.

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According to the Library Board’s Attorney Bill Shaneyfelt, the report is a reasonable conservative estimate for the referendum’s impact on property owners in Jasper city limits, Bainbridge Township, Madison-Jasper and Madison-Boone.

In compiling the report, Umbaugh took the going interest rates for bonds and added one percent to factor in possible future increases. So, the report indicates bond rates of 3.98 percent, 4.49 percent and 4.81 percent which are current bond interest rates padded with an additional one percent.

With these rates, the ten-year payback would cost the library $1,460,477 in interest; 15 years would cost $2,509,771; and 19 years would cost $3,491,469 in interest.

Additionally, the report does not take into account the increased assessed value of the City of Jasper and Bainbridge Township. Any increase in assessed value should decrease the referendum’s impact on property taxes. Golden reported the assessed value of the area had been steadily increasing since 2012.

“With our current tax rate and this additional (bond), we will still be in the bottom half of the state in regards to library tax rates,” Library Director Christine Golden said.

The board did not make a decision on the bond term but agreed to consider it at the April board meeting. In the meantime, they invited the public to reach out to them or Golden at 812-482-2712 for comments or feedback.

These rates will be included in the question on the November ballot after the board finalizes the bond term but will still require approval from the Indiana Department of Local Government Finance. If the library uses any other property tax funds, including the existing rainy day fund, for the project, that amount will be included in the question on the ballot.

Regardless, the library is only asking taxpayers to allow them to bond $6.5 million for the project.

“I think it is something the public can get behind,” board president Dean Vonderheide said. “We would have to do this if we decided to build at the current location.”

Here is the full report from Umbaugh.

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According to Vonderheide, the agreement with the Sternbergs allows the board to form the limited liability corporation that is required for the issuance of over $3 million in tax credits awarded by the Indiana Economic Development Commission for the project.

The purchase agreement hinges on the referendum approval.

“I am excited. We have been working towards this for quite a while,” Vonderheid said. “The numbers on the bond are very reasonable.”

At the end of the meeting, Golden clarified that the residents in the City of Jasper and Bainbridge Township are not assisting the contractual library in paying for the libraries in Dubois, Birdseye and Ferdinand. She explained that several comments had been made recently about the residents in Bainbridge and Jasper paying for Ferdinand’s library. She said that property taxes from these areas only go to the Jasper Library.

Edit: We added Madison-Jasper, and Madison-Boone to the article to further clarify who would be impacted by the tax increase.