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Home My WebLink AboutLIB Special Library Parcel Tax Committee Annual Reportf SAN RAFAEL THE CITY WITH A MISSION Agenda Item No: 3.d Meeting Date: December 5, 2016 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Library Prepared by: Sarah Houghton, Library Director City Manager Approval: TOPIC: ANNUAL REPORT OF HOW SPECIAL LIBRARY PARCEL TAX FUNDS WERE SPENT SUBJECT: SPECIAL LIBRARY PARCEL TAX COMMITTEE'S ANNUAL REPORT RECOMMENDATION: Staff recommends that the City Council accept the 2016 Special Library Parcel Tax Committee's annual report on the expenditures of the Special Library Parcel Tax funds. BACKGROUND: The Committee was appointed after the passage of the Special Library Services Parcel Tax adopted by Measure C on June 8, 2010. The Committee's sole purpose is to ensure the monies have been expended in accordance with the authorized purposes of Measure C. ANALYSIS: The Committee's 2016 report states that it believes this past Fiscal Year 2015/2016 evidenced an appropriate expenditure of Measure C funds. The preliminary fund balance at the time of the Committee's review was $159,821 in the Special Library Parcel Tax Fund. The final audited fund balance was $158,180. This fund balance is a result of three primary factors over the life of the tax: unexpectedly vacant staff positions funded by the Parcel Tax (currently filled), direction from the Finance Department to reserve funds to cover staff cost increases in the remaining years of the tax, and the accumulation of small amounts being underspent in various line items over the life of the tax. There is also a capital set-aside fund balance of $541,195 earmarked for new and improved library facilities as directed by City Council. COMMUNITY OUTREACH: To date the Library has received input on expenditures from the Special Library Parcel Tax Committee through their annual report (enclosed). FOR CITY CLERK ONLY File No.: 9-2-62 Council Meeting: 12/05/2016 Disposition: Accepted report SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 FISCAL IMPACT: There is no fiscal impact from the acceptance of this report. OPTIONS: Staff recommends Option 1. Option 1: City Council accepts the 2016 Special Library Parcel Tax Committee's annual report. Option 2: City Council does not accept the 2016 Special Library Parcel Tax Committee's annual report. RECOMMENDED ACTION: Accept the 2016 Special Library Parcel Tax Committee's annual report ATTACHMENTS: 1. 2016 Special Library Parcel Tax Committee's annual report City of San Rafael: Special Library Parcel Tax Committee Report 2016 The Committee's sole function is to review expenditures of revenue for the Special Library Services Parcel Tax adopted by Measure C on June 8, 2010, and to ensure that the monies have been spent in accordance with the authorized purposes of Measure C. The figures set forth in the 2015-2016 Fourth Quarter Revenue and Expenditure Report (June 30, 2016) show that, with the end of the fiscal year, 22 per cent of the Library's total operations budget came from the Special Library Parcel Tax. With regard to these expenditures, the Committee believes that this past fiscal year evidenced an appropriate use of Measure C funds. In its last report, (2014-2015), this Committee approved all Library expenditures as being appropriate under Measure C, but it also outlined specific instances in which the measure's funds could have been used and were not. Our report stated that Measure C voters had been assured that additional money would be spent on: (1) Staff; (2) Outreach to public schools; and (3) Increased hours. We were aware that the passage of Measure C had resulted in substantially increased hours, and that the Library Director had made ongoing efforts, in spite of budget limitations, throughout the parcel tax period, to increase staff education and public school outreach. However, we felt that Measure C mandated that these goals be adequately funded. At the May 2016 meeting of the Special Library Parcel Tax Committee, the Library Director provided a comparison of the 2015-16 budget and the 2016-17 budget. Per recommendations of the Committee and the Library Board of Trustees, $58,000 from the fund balance of $115,987 has been added to the Parcel Tax Budget for 2016-2017: $50,000 for extra staff hire to assist with outreach to the schools and $8,000 for staff training. This $50,000 supplemental fund has enabled the Library to initiate a city-wide program of providing every school age child (whose parents do not elect to drop out) with a library card. Additionally, the Library Director and Staff have met with San Rafael middle and high school teachers and administration in order to explore and implement increased outreach to our public schools. To further this process, monthly meetings have been scheduled Further, the $8,000 designated to fund staff training and education, has enabled the Library to begin providing the opportunities for staff educational programs and travel so essential to maintaining and improving professional standards. Finally, while the Library Director and staff explored the issue of increased hours, particularly for the Pickleweed Library, they were unable, under present budget constraints, to seriously consider adding additional time to the Library's weekly schedule. At the July 2016 Parcel Tax Committee meeting, the Committee, in response to a request from the Library Director, voted in support of a one-time augmentation to the Library's collection budget of $60,000, to be taken from the Parcel Tax fund balance. Note that with the unaudited 2015-16 Fiscal Year numbers, the fund balance as of June 30, 2016 would be $159,821, and the total addition to the Parcel Tax Budget for 2016-17 is $118,000, which implies that the fund balance as of June 30, 2017 may drop to $40,000. However, it is our belief that this expenditure comports with Measure C's mandate to increase the Library's budget for materials. In our last report we noted that, according to the Library Director, each year of the tax will bring a reduction in revenue, due to the ever increasing exercise of parcel tax exemption requests. During the past fiscal year, the Parcel Tax revenue was lower than anticipated: $862,743 compared to the $875,850 projected figure. However, with the passage of Measure D, which takes effect in the 2017-18 fiscal year, and which has a higher rate which will increase over the nine year period, the fund balance should increase. This Committee is also tasked with ensuring that the Library maintain its share of the City's General Fund. The Committee concludes, in accordance with the intent of the resolution, that the Library has continued to maintain its appropriate share. The text of Measure C states that "the parcel tax would augment the capacity of the City of San Rafael to provide quality library services to its residents, over and above the proportional amount of the City's general fund currently allocated to the Library." This was to ensure that the City would not cut general funds to the Library because there was another source of funds. The City Attorney has ruled that the proportion refers to the 2009-10 Fiscal Year, the year in which the measure was written and sent to the voters. The Library's share of the 2009-10 General Fund Actual Expenditures was 4.41%. Finally, the Committee reiterates that Measure C has enabled the Library to function at a level which would have been impossible for it to reach and maintain had the measure not passed. Since its implementation, the Library has significantly increased its hours of operation to ninety hours a week. Moreover, the augmented revenue has led to a substantial rise in circulation over the life of the measure to date. Measure C funds are seen as an integral and essential part of the continuing vitality of the San Rafael Libraries. With the passage of Measure D, it is clear that the residents of San Rafael agree. Signature page for Special Library Parcel Tax Committee 2016 Annual Report to City Council Phyllis Brinckerhoff Glena Coleman Peter Lee Carol Manashil Gary Ragghianti v Barrett Schaefer ROUTING SLIP / APPROVAL FORM INSTRUCTIONS: Use this cover sheet with each submittal of a staff report before approval by the City Council. Save staff report (including this cover sheet) along with all related attachments in the Team Drive (T:) --> CITY COUNCIL AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS 4 [DEPT - AGENDA TOPIC] Agenda Item # Date of Meeting: 12/5/2016 From: Sarah Houghton Department: Library Date: 11/23/2016 Topic: Special Library Parcel Tax Committee 2016 Annual Report Subject: Committee Report Type: ❑ Resolution ❑ Ordinance ❑ Professional Services Agreement ® Other: Staff Report APPROVALS ® Finance Director Remarks: Approved -Van Bach ® City Attorney Remarks: LG -Approved 11/28/16 ® Author, review and accept City Attorney / Finance changes Remarks: SH -approved 11/29/16 ® City Manager Remarks: