When the library board asks city council on Tuesday to approve a special election for a bond referendum to back its renovation project, it may be cheaper than expected.

Gene Mihaly, chairman of the board, asked a bond question that would give voters the option to spend $1 million to fund the $5 million project. It was at the August 22 council meeting.

Since then, however, Mihaly has received a check for $400,000 from an anonymous donor. While there’s no reason to believe the check won’t clear, said library director Lisa Sheley, trustees are cautious about reducing their claim to $600,000.

If the donation is successfully deposited into the board’s account, the proposed bond of $600,000, if approved by voters, would not be a burden on ratepayers as it would be reimbursed by the Library Services Office and Rhode Island Information.

Voters approved a bond in 2018 for $1 million to support the project, then passed another bond in 2020 for $1.5 million. While taxpayers will most likely be responsible for the $18 expense, administrators promised voters that the $20 obligation would be fully reimbursed by the state agency.

Trustees have since learned that OLIS will reimburse them $2.1 million for the project, which is $600,000 more than expected when they applied for the ’20 bond. This surplus, Mihaly said, will be used to fully fund the bond the council is currently seeking. The rest of the money to fund the project will come from grants and donations.

The reason for the third bail request is due to rising construction costs. The lowest bid from three contractors, which was submitted on August 10, was 25% higher than estimated. EW Berman’s base bid was $4.27 million, plus $377,400 to install a dumbwaiter and replace the roof. While these options were seen as alternatives, Mihaly called it a misnomer because they are necessary.

Once the money for furnishings, fixtures and architectural services are included, the final cost is only $2,600 less than $5 million. With bonds, grants and donations, the trustees have $4.04 million; that’s not counting the pending check for $400,000 or the third request for bail.

Trustees are asking the board to streamline the special election because EW Berman’s candidacy expires 90 days after it was submitted. If the referendum is not considered by that deadline, the directors will have to solicit bids a second time, which Mihaly says will result in higher bids.

According to Mihaly, he had no inclination for the $400,000 donation. After news broke last week that the trustees were $1 million short, Mihaly was casually talking to a woman about what it would take to fund the project without further burdening taxpayers. The next day, she approached Mihaly and handed him a check for $400,000.

“I almost fainted,” he said.