The Library Foundation has pledged $3,000,000 to offset the expenses of building a new Library.  The $3,000,000 will be paid to the City in installments of $300,000 per year over 10 years.  The $300,000 will be used annually for debt service payments, which will lower the levy citizens will pay.  The attached agreement sets out the rights of the Foundation and City, sets the annual payment amount and date the payment is due. 

No other alternatives were analyzed.

The financial impact will be to reduce the annual General Obligation debt service payment by $300,000.  If this amount was assessed to property owners, it would equal about 1.8 mills.

Staff recommends that the City Council approve the pledge agreement between the Library Foundation and City of Billings.