<div dir="ltr">Hello everyone -<div><br></div><div>First, thank you to those of you who responded to my inquiry earlier this month. Several of you were interested in the responses I received, so I've compiled them here. I generalized all of the libraries just in case any of you preferred that I not share your specific information with the group. Some very good information was shared as well as insight into potential ways of addressing our building/funding issues. I will likely be contacting a couple of you directly in the near future for additional information. Again, thank you! </div><div><br></div><div><p class="MsoNormal" style="margin-bottom:0.0001pt"><b><u>City Library “A”</u></b></p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">“As I
understand it (and I am not a lawyer), the governing board should annually tell
the City how much of the approved library millage to collect. The board should also approve the budget for
the library. If the board wishes a
portion of the budget to be reserved for capital improvements, they could
approve by resolution a designated capital improvements fund, and budget for a
transfer to that fund. Then in years when
an improvement is needed, they can tap into that reserve fund.</p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">However,
since the city owns the building, perhaps they should be responsible for
improvements. City Library A prepares a
5 year capital improvement plan which is approved by City Council every
year. This document helps the City plan
for needed/desired improvements. If your
City follows a similar procedure, you might want to push for your building
improvements to be added to that plan.</p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">A caution
about City owned buildings. If the City owns
it, the City can sell it and keep the proceeds.
This happened to City Library A in 2006.
So, before you decide to use library millage for capital improvements to
property you do not own, you might want to have a legal document drafted
clarifying the relationship between the City and Library.</p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"><b><u>City Library “B”</u></b></p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"><b><u> </u></b></p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">“City
Library B does levy 2 mills (one voted on by the community--10 year levy and
one that is done by the City Council with a vote of the people per PA 164)</p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">The City has
a Capital Improvement Plan (5 year plan) that it puts money into. Building improvements, etc. come out of the
library's budget for the most part.
There was some City money for a fire alarm system. The FY16 budget does not have any City money
allocated for capital improvements.</p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">Due to
budget issues, the City has pushed back repairs on the library (which is a city
owned building) and then has removed the money all together so that our fund
balance is being allocated for major roof repairs and a fire suppression system
(believe it or not the library has no fire suppression system and just got a
fire alarm system).</p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">I hope this
helps. It is not necessarily good news
but it sounds like we are in the same boat for capital improvements.”</p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"><b><u>City Library “C”</u></b></p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">“We are a
City library, and as far as I know, founded by City Charter. The ordinances of
the City state the City will provide library services for their residents, so I
think we're in the same situation as you are.</p><p class="MsoNormal" style="margin-bottom:0.0001pt"><b><u> </u></b></p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">Our facility
was built in 2007 using library funds and a bond that we are still paying off
out of our general fund (final payment is April 2016, so we're getting close!).
I believe, although I am not 100% certain, that the building and grounds are
owned by the City because we are a department of the City and not really a
legal entity in our own right, especially because of the bond, which is held by
the City. We pay almost all of the maintenance and repair costs for our
facility and surrounding grounds (including parking lot, sidewalk, etc.). </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">Capital
improvements are paid for out of the library's operating budget. A redesign
project was completed in 2008 that I believe cost approximately $70,000 and it
was all paid out of the library's fund balance, library grants, private
donations, and our operating budget. I would consider that a fairly big capital
improvement, although structurally the building was unchanged (new carpet, new
shelving, painting of almost the entire interior, new computer station
furniture, a larger circulation counter, a large custom art feature/book shelf
for the children's room etc.).</p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">The City for
many years did not assess any millage for operating the library. For a period
of time, they annually transferred a portion of money from their general fund
into the library fund. This was before my time, but I think $25,000 was typical
in the final years before the library director and library board convinced them
to levy the full 1 mill authorized to be levied by act of City Council instead
of a public ballot initiative. Whatever the City apportionment was, it didn't
cover the annual cost of the building payment. I think from 2006 to 2014 they
levied the full 1-mill, but since the annual building payment cost over 80% of
the millage revenue, I doubt there was any real consideration to decrease that
levy. When they decided to levy the mill for operating expenses, they stopped
budgeting any money for the library out of their general fund. I was told by
the former City Manager that City Council expected to decrease or do away with
the 1-mill levy as soon as our building is paid off. That doesn't mean the
library board wouldn't have prevailed upon them to continue the levy, but I
think it is a fairly strong indication the levy was primarily in place to cover
the debt. </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">Last year,
we took a millage proposal to the public at the County level (so the six public
libraries in the county joined together to get the measure on the ballot with
the understanding that if it passed the funds would be distributed to each of
the libraries based on their service areas). It was for .5 mill and it passed.
The City will be decreasing their local levy to at most .5 mill so residents
are not paying more annually than they were before. This was my suggestion. Its
still an overall increase in revenue because we will now receive millage
revenues from townships we serve, whereas previously it was only residents of
the City that paid the millage. I fully expect that once the building is paid
off the City will no longer levy the local millage and will only reinstate it
if in 7 years the renewal of the County millage fails. It concerns me slightly that the County
Commission will have the discretion to not levy the entire .5 mill (less
Headlee rollbacks), but there's not much I can do about that. I was told it is
unlikely they will levy a lesser amount unless the libraries do not fully
utilize the millage funds from a maximum levy.”</p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"><b><u>City Library “D” </u></b></p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">I wasn’t
clear from your email if your library is a General Fund library, or if you have
a dedicated millage? <font color="#0000ff">(Clarification note... SJ is a dedicated millage set in the City Charter... not General Fund or set City Department) </font> So I am not sure
how best to answer your question, but here’s the best I can do:</p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">City Library
D is a City library founded by a City
Charter. Until August 2011, it was a department of the city, and its operations
were paid from the City’s General Fund. However, in August 2011, a dedicated
millage was passed, so while City Library D remains a department of the City,
its funding comes from this dedicated millage and whatever revenue the Library
generates.</p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">When City
Library D was a general fund library, all of its expenses—operating and
capital—were paid from the City’s General Fund. In other words, the City was
responsible for EVERYTHING. </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">We had an
Advisory Board, but they were advisory only. They could advise us (as they used
to do) that we should have a $1 million collection budget, but at the end of
the day, this was up to the City Council.
That’s why City Council ultimately abolished the Library Advisory Board,
b/c essentially, they had no power or authority to make changes @ the Library,
and other mechanisms are in place as far as Citizen Input and advisory.</p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">As a General
Fund Library, the Library was in the queue with all of the other City
departments in terms of funding—we may have needed some improvements, but the
Fire Truck/Road Repair/Police Tasers, etc, came first. So it’s not like we got everything we wanted
when we wanted it.</p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">Now that the
Library has a dedicated millage, all expenditures—operating and capital—are
supposed to be covered by this dedicated source of revenue to the Library. In
other words, Police/Fire/DPW can’t use library millage revenue for their
operations.</p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">Having said
that, for the 2015-2016 budget year, due to the fact that the library has had some
significant building issues, and the millage will not cover general operations
+ library collections + all of the building repairs, it is being recommended
that the City contribute approximately $170,000/year for the next 4 years to
the library, for critical building repairs.</p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">This is part
of the budget process, to be discussed at the end of this month and voted on by
City Council in May.</p>
<p class="MsoNormal" style="margin-bottom:0.0001pt"> </p>
<p class="MsoNormal" style="margin-bottom:0.0001pt">City Library
D’s millage is 0.70 mils, and the City levies all of it. Anything the library
doesn’t spend goes into its fund balance, which is being used for critical
building repairs as well (doesn’t cover the full cost, hence the City
contributing $170,000/yr, possibly). The
City also levies its full millage amount, and a portion of that does go into
the City’s Capital Fund. But that covers roads, fire stations, all City Capital
needs, of which there are many.”<b><u></u></b></p><div><br></div>-- <br><div class="gmail_signature"><div>Stephanie Masin, Director</div>
<div>Maud Preston Palenske Memorial Library</div>
<div>500 Market St. </div>
<div>St. Joseph, MI 49085</div>
<div>269-983-7167 (phone) </div>
<div>269-983-5804 (fax)</div><div> </div><div><img src="http://igeek.awclient.info/messages/15843/preview/email_signature"></div></div>
</div></div>