Stewartville council approves consideration of library expansion and bid awards after tax debate

The Stewartville City Council voted unanimously to approve consideration of a proposed expansion to the Stewartville Library and recommended bid awards after an extended discussion about cost, phasing and tax impacts.

The project presented by city staff calls for an addition to the existing library that would add a community room, study and project rooms, an extra set of restrooms and a future courtyard. A staff presenter said the solicitation yielded bids across roughly 20 categories and that "they got a 120 responses," signaling broad contractor interest.

Council members and staff framed the decision around financing and timing. A staff representative reported the city has about $2.243 million in cash on hand, expects $280,000 in additional interest income before year-end, anticipates $138,000 in property-tax revenue this year for the library capital fund and has a $40,000 pledge from the Stewartville Library Foundation. "After the foundation donation, the property tax of the 138 and the $2.80 that you just said, we only need a 140,000 to fully fund it," said Jeremiah, a councilperson and member of the library board.

Not all members were comfortable with the higher cost estimates. The councilmember leading part of the discussion, identified in the transcript as Chair, said, "I won't go for 2.8, 2.7, 2.5. Not without a public loan," citing concern about increasing local taxes without a public referendum. Other members urged moving forward, arguing the town had invested years of planning and saved interest income and donations to cover much of the cost.

Council and staff also debated phasing. Staff explained that completing the work as a single contract could capture efficiencies because subcontractors would already be onsite to finish remodeling tasks in a subsequent year; conversely, phasing could reduce near-term spending but increase long-term costs. The presenter noted some site items — sidewalks and driveway — were being proposed from separate street and sidewalk categories so they could proceed whether the library expansion moves ahead.

Council members asked for and received budget detail on reserves and other funds. Staff said the parking-lot reserve balance is $306,000 and a general government capital reserve is $384,000; parking-lot work was estimated at about $70,000. Staff also said last year the library fund earned $481,000 in interest and that this year's interest receipts to date were lower, with $69,000 received so far.

Several members pressed staff for final plans and engineering review before committing to the full contract. The presenter said they were "waiting for her to sign off" — referring to the city engineer — and offered to round up outstanding questions for the next meeting if council preferred to delay action.

A councilmember moved to approve consideration of the library project and bid approvals; another councilmember seconded. The clerk called a roll-call vote and the motion carried with recorded "Yay" votes; the council then adjourned.

The council did not adopt a final construction contract at the meeting. City staff will complete outstanding engineering sign-off and finalize the bid worksheet and recommended awards; council members said they expect to defend the decision to residents by emphasizing savings from interest, donations and grants.

The meeting record shows the council discussed next steps and staff follow-up but did not set a specific date for final contract authorization.