The Village of Downers Grove provides many important financial services for the Downers Grove Public Library: banking, payroll, employee health insurance programs, to mention only a few.
In addition, the Village serves as the borrower and payer of the Library's bonded indebtedness. In 1997, Downers Grove voters authorized a bond issue to pay for the expansion and renovation of the Library building. The project was completed in 1999. A small property tax levy has been enacted each year to pay the debt. Repayment will be completed in 2017.
In late 2012, Village financial professionals saw an opportunity to save the taxpayers some money. Like a homeowner refinancing a mortgage with a lower interest rate, the Village paid off the $2.4 million balance and issued new bonds, saving the taxpayers about $150,000 in interest. This process was completed in early 2013.
Recent press reports have described this activity in a way that has caused some confusion. Some people have wondered if the Library's property taxes are subsidizing the Village's operations. This is not the case.