Naperville looks for ways to pay off loans for carillon
Naperville is considering capping its funding for cultural grants next year in order to finish paying down loans from the Millennium Carillon.
The city is still on the hook for $2.8 million from both a loan and line of credit it extended to help finish construction of the carillon at the foot of Rotary Hill along the city's Riverwalk.
"Rather than stretch this out longer, they're looking at ways to accelerate pay down and the SECA Fund (for cultural activities) has increased over the years it has been in place," said Karen DeAngelis, director of finance.
Paying off the loan quickly could save the city money as much as $221,000 in interest, but recipients of the cultural grants are concerned about losing their funding.
In 1998, a group of residents began making plans to construct a carillon in Naperville to celebrate the Millennium. The following year the group secured a $1.5 million line of credit from the city but the price tag for the project continued to grow.
The carillon was dedicated in 2000 but construction of the planned visitors center and observation deck were put on hold.
In September 2005, the city took ownership of the project and spent $3.3 million to complete it. Doing so required a $2 million loan, of which $1.2 million remains.
Between the line of credit and loan, the city owes $2.8 million. The line of credit, now at $1.6 million, accumulates 2 percent interest a year and must be paid by 2011 - but there currently is no plan for how to pay it down.
Naperville uses $237,788 a year from the Special Events and Cultural Amenities Fund to pay down the loan. At the current rate it will be retired in November 2014.
Using more money from the cultural fund to pay the debts sooner could save as much as $221,000 in interest.
The cultural fund was created in 2004 and comes from a 1 percent tax on food and beverages. Its coffers have continued to grow and this year the city doled out nearly $2.9 million to groups such as Century Walk Corp., DuPage Children's Museum, Exchange Club and The Conservation Foundation. It had received $4.12 million in requests from 59 organizations.
DeAngelis has come up with six scenarios for capping funding for the cultural grants in order to pay off the loan and line of credit. The caps in the scenarios range from $1 million to $2 million.
The city council will discuss the issue at a Sept. 28 workshop and DeAngelis said it also will be a chance for councilmen to bring up their own alternatives.
Recipients of the cultural grants already have expressed their displeasure about potential funding caps at a recent city council meeting.
Nancy Wiersum, community development director for Naperville Community Television, Channel 17, asked councilmen to consider the impact capping the funds would have on the community.
"It would be very difficult, if not impossible, to produce these extraordinary works without the SECA funding," she said. "The wide range of cultural events and artistic programs brought to the community through this fund are primary contributors to the character and spirit of this community. They are in part why Naperville is not just another city."