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Home My WebLink AboutLib Special Library Parcel Tax Committee Report 2017____________________________________________________________________________________ FOR CITY CLERK ONLY File No.: 9-2-62 Council Meeting: 12/18/2017 Disposition: Accepted Report Agenda Item No: 4.e Meeting Date: December 18, 2017 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Library Prepared by: Sarah Houghton, Library Director City Manager Approval: ______________ TOPIC: SPECIAL LIBRARY PARCEL TAX ANNUAL REPORT SUBJECT: SPECIAL LIBRARY PARCEL TAX COMMITTEE’S ANNUAL REPORT (CONCLUSION OF MEASURE C’S 7-YEAR TERM) RECOMMENDATION: Staff recommends that the City Council accept the 2017 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. This is the final report on Measure C expenditures as it is the final year of the tax levied by Measure C. A new Measure D Parcel Tax Committee has been appointed and is tasked with reviewing current and forthcoming years’ spending. ANALYSIS: The Committee’s 2017 report states that it believes this past Fiscal Year 2016/2017 evidenced an appropriate expenditure of Measure C funds. The final audited fund balance was $126,376. This fund balance is a result of three primary factors over the life of the tax: vacant staff positions funded by the Parcel Tax (currently all filled), direction from the Finance Department to reserve funds to cover staffing 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. The committee typically meets 5 times per year. This report was discussed SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 initially at the October 9, 2017 meeting and then finalized and voted on at the November 28, 2017 meeting, both of which were open to the public (enclosed). FISCAL IMPACT: There is no fiscal impact from the acceptance of this report. OPTIONS: Staff recommends Option 1. Option 1: City Council accepts the 2017 Special Library Parcel Tax Committee’s annual report. Option 2: City Council does not accept the 2017 Special Library Parcel Tax Committee’s annual report. Option 3: City Council accepts the 2017 Special Library Parcel Tax Committee’s annual report with modifications. RECOMMENDED ACTION: Accept the 2017 Special Library Parcel Tax Committee’s annual report ATTACHMENTS: 1. 2017 Special Library Parcel Tax Committee’s annual report City of San Rafael Special Library Parcel Tax Committee Report 2017 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. This is the final report for Measure C which ended June 30, 2017. In the previous report, it was noted that a total of $118,000 was moved from the fund balance of $158,180 as of June 30, 2016 to the 2016-2017 Parcel Tax Budget. The breakdown of this addition was: $50,000 for extra staff hire to assist with outreach to the schools, $8,000 for staff training, and $60,000 to support a one-time augmentation to the Library’s collection budget. However, Parcel Tax Expenditures were $907,469 of a budgeted $990,819 (or 92% of Budget) largely due to staffing vacancies and extra hire staffing. This resulted in a Parcel Tax Fund Balance as of June 30, 2017 of $126,376, which is $31,804 lower than the June 30, 2016 balance. During the past and last fiscal year of Measure C, Parcel Tax revenues were $870,783 compared to $896,999 in the first fiscal year, 2010-2011. This is a reflection of declining Parcel Tax revenues, due to the ever increasing parcel tax exemption requests and fixed rates for the tax. Measure C allowed the Library to increase hours from 78 per week to 90 per week. The biggest expense of increased hours is personnel. This is an expense that will increase each year. 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, revenues, hopefully, will not decrease. The figures set forth in the 2016-2017 Fourth Quarter Revenue and Expenditure Report (June 30, 2017) show that, with the end of the fiscal year, 24 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. 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%. The Library’s share of the 2016-17 General Fund Actual Expenditures was 4.43%, a little higher than budgeted. The final fund balance of $126,376 will be used as needed for Library services as specified in the language for Measure C. The capital set-aside balance remains at $541,195. We would like to close off Measure C by repeating the final paragraph from last year’s report which was written after the passage of Measure D in June 2016: 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. The Measure D committee respectfully submits this report on behalf of the Measure C Committee: Phyllis Brinckerhoff, Glena Coleman, Gary T. Ragghianti, Peter Lee, Carol Manashil and Barrett Schaefer. Measure D Committee: \?~ Phyllis Brinckerhoff Peter Lee Robert Ross 1112812017 STAFF REPORT APPROVAL ROUTING SLIP Staff Report Author: Sarah Houghton Date of Meeting: 12/18/2017 Department: Library Topic: Special Library Parcel Tax Committee Annual Report Subject: Special Library Parcel Tax Committee Annual Report Type: (check all that apply) ☒ Consent Calendar ☐ Public Hearing ☐ Discussion Item ☐ Resolution ☐ Ordinance ☐ Professional Services Agreement ☐ Informational Report *If PSA, City Attorney approval is required prior to start of staff report approval process Was agenda item publicly noticed? ☐ Yes ☐No Date noticed: ☐Mailed ☐Site posted ☐Marin IJ Due Date Responsibility Description Completed Date Initial / Comment DEPARTMENT REVIEW FRIDAY noon 12/1 Director Director approves staff report is ready for ACM, City Attorney & Finance review. 11/29/2017 ☒ SH CONTENT REVIEW TUESDAY morning 12/4 Assistant City Manager City Attorney Finance ACM, City Attorney & Finance will review items, make edits using track changes and ask questions using comments. Items will be returned to the author by end of day Wednesday. 12/11/2017 12/4/2017 12/5/2017 ☒ RW ☒ LG ☒ Van Bach DEPARTMENT REVISIONS FRIDAY noon 12/8 Author Author revises the report based on comments receives and produces a final version (all track changes and comments removed) by Friday at noon. 12/11/2017 ☒ SH Still waiting on one signature from a Committee member for the signature page. ACM, CITY ATTORNEY, FINANCE FINAL APPROVAL MONDAY morning 12/11 Assistant City Manager City Attorney Finance ACM, City Attorney & Finance will check to see their comments were adequately addressed and sign-off for the City Manager to conduct the final review. Click here to enter a date. Click here to enter a date. 12/12/2017 ☒ ☒ ☒ Van TUES noon 12/12 City Manager Final review and approval 12/13/2017 ☒ JS