The Putnam County Public Library Board of Trustees held a special meeting Thursday to review and accept bids on a $300,000 loan needed to cover operation costs. They received one bid from First National Bank. It was accepted.
However, board members feel they have been backed into a corner. There is a bond payment of $250,000 due at the end of the year and they will not be able to make it without taking out a loan.
"This is the first time we have had to borrow in a while," said Alice Greenburg, director of the library.
It all has to do with property tax statements being sent out late. The first tax installment is due in November but with the second installment not being due until January of 2009, it puts the library in a tough spot financially.
They will only be receiving one draw this year instead of two. The one draw, which is expected sometime in December, will not be enough to cover the upcoming bond payment.
The money obtained by the library from property taxes goes towards covering operating expenses. Those expenses include payroll and other bills associated with running the library.
Board members have done their best to keep their budget in good standings. With a third of it left for the year, they have done everything short of cashing in a Certificate of Deposit. That is something they are trying to avoid.