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Library's Expansion | Newspaper Articles
Mayor has plan to pay library overrun
Mary Jo Hill , Worcester Telegram & Gazette, November
2, 2006
LEOMINSTER - Mayor Dean J. Mazzarella said he has come up
with a plan to pay for the $1.3 million overrun in the
library project that will not involve a tax hike and, in
fact, has an idea that will cut the project's cost to
taxpayers.
There had been talk that borrowing to cover the shortfall
would hike the average taxpayer's bill by $14, but Mr.
Mazzarella said a capital budget he has put together would
wipe out that increase.
Under this budget, Mr. Mazzarella would borrow the money for
the shortfall but use free cash to pay off the loan.
The City Council would vote over a 7- to 10-year period on
paying off part of the $1.3 million each year using free
cash, Mr. Mazzarella said.
The mayor also wants to use free cash to pay off about
$400,000 in interest for temporary borrowing for the entire
library expansion.
Paying off this interest now rather than over 10 years would
save money, he said.
The library overrun became a contentious issue between the
mayor and the council when councilors were asked to
authorize the $1.3 million loan. Some councilors balked at
the idea of a possible tax increase for the borrowing, but
Mr. Mazzarella said he would work on finding other ways to
pay for it.
Council Chairman Robert A. Salvatelli said he is happy to
hear that the mayor has come up with a way to solve problems
related to payment for the library.
Mr. Salvatelli said he believed using money from the sale of
a house owned by the city would have been less painful than
free cash. Apparently the mayor had other plans for that
money, he said.
As for the capital budget, which the mayor plans to provide
to the council before the Nov. 13 meeting, Mr. Salvatelli
said, "We'll take a look at it."
Mr. Mazzarella said the money from the sale of the house
will go into a pot of money to be used for capital needs.
Since the house was bought as part of the Sky View Middle
School project, he would like to see the money used for a
project that is school related.
Other items to be covered by free cash under Mr.
Mazzarella's capital budget include:
School transportation costs.
Improvements to a communications tower for the Police
Department.
Purchase of a dump truck with a sander and plow, police
cruisers and an ambulance.
Maintenance of cupolas on City Hall and Kendall Hall.
Replacement of the roof at Leominster High School.
Work on the veterans' center.
The mayor said he plans on holding off on sending some of
the projects to the council right away to see how finances
are going during the year.
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