The Lexington-Fayette County Urban Government is likely to soon approve a $41 million revenue bond issue to help fund construction of a library for the University of Kentucky, according to the government's top finance official.
"I do not see a problem with approval [of the borrowing], which will be contingent on none of our revenues being pledged to the bond issue," said finance commissioner Donna A. Cantrell. "We are the conduit issuer."
The finance official noted that if completed, the borrowing would be the first Lexington-Fayette County bond issue to fund a University of Kentucky project. The university, located in downtown Lexington, is one of the largest employers in the county.
"We are happy to be able to enter into this cooperative agreement," Cantrell said, "and are looking ahead to a lot of joint projects with the university."
Cantrell said that the county will lease the library to the university, which will make annual debt service payments of $3 million from excess operating funds generated by the university's athletic department.
The project will cost $62 million, with private donations making up the $21 million difference not covered by the bond proceeds.
Gov. Brereton Jones had pushed for approval of state bond funding for the library, but was rebuffed by lawmakers in a regular session in April and in a special session in June.