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HomeMy WebLinkAboutLib Lib. Parcel Tax Committee Report 2011Agenda Item No: 3 h. Meeting Date: December 19, 2011 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Library Prepared by: Sarah Houghton 4e City Manager Approval,� % ��, c_ Acting Library Director SUBJECT: Special Library Parcel Tax Oversight Committee Report RECOMMENDATION: Staff recommends City Council review and accept the attached Special Library Parcel Tax Committee's formal report. BACKGROUND: On June 8, 2010, San Rafael voters passed Measure C, providing for a Special Library Services Parcel Tax in the amount of $49 per parcel, to be used to maintain and expand library services. The text of the Measure on the ballot read as follows: To provide a consistent, locally -controlled funding source, augmenting current general fund allocations for the San Rafael Public Library, for expanded hours, improved facilities, equipment, materials, and services for children, teens, and adults, shall the City of San Rafael be authorized to levy an annual $49 parcel tax (slightly higher rates for multiple -unit residential parcels) for a period of seven years, with oversight by an independent citizens committee and with exemptions for senior citizens? The ordinance itself specifies the following uses for the tax: 3.36.010 — Purposes. This Chapter is adopted to achieve the following, among other purposes, and the City Council directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To staff, provide, maintain and improve hours of operation, services, equipment, facilities, and materials at the San Rafael Public Library; and B. To provide and improve programs and materials for children, teens, adults, seniors, literacy learners and people with disabilities at the San Rafael Public Library; and C. To help with the City's long-term goal of setting aside funds for necessary facility improvements to the San Rafael Public Library. In On November 1, 2010 by Resolution No. 13073 the City Council approved a seven year Library Department spending plan and reorganization to implement the Special Library Parcel Tax (Measure C). The tax funds began to accrue to the City as of December 15, 2010 and Library staff have been working FOR CITY CLERK ONLY File No.: Council Meeting: I'jtci/,2c�rt Disposition: ' = f -r SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 to spend these funds as directed by the City Council, to deliver the promised expanded hours, materials, facilities, equipment and services. ANALYSIS: 18 months have passed since the passage of Measure "C," the Special Library Parcel Tax, which has provided the Library increased funding for library services and materials. With funding from Measure "C," the Library was able to expand open hours at the Downtown Library by 11 hours per week and the Pickleweed Library by 5 hours per week. All told, this results in 832 additional library hours over the course of a year. The first month of expanded hours saw a jump of 7% in the number of books and media checked out at the library. In addition, the Library has been able to introduce improved touch screen self -check-out stations at both libraries, increase the number of storytimes and technology classes, build a new website, begin circulating magazines, and remove the rental fee from some of our audio-visual items. We have also been able to significantly increase our digital collections. Library patrons can now learn a language, research your ancestry, search for a job, or get homework help—for free from the library's website with their library card. Attached is a report from the Special Library Parcel Tax Committee, formed to oversee that the parcel tax funds are collected and expended in accordance with the voters' wishes. The Committee and the Library respectfully submit this report for your review. FISCAL IMPACT: There is no fiscal impact to the General Fund or to the Special Library Parcel Tax fund as part of receiving this report. Any future budgetary adjustments regarding the use of Measure C funds would need to be presented by staff under a separate budget request to the City Council as part of the midyear budget amendment. ACTION REQUIRED: Review and accept the Special Library Parcel Tax Committee's formal report. OPTIONS: Review the Committee's report and either a) accept the report as written; or b) instruct the committee to return with revisions to a future City Council meeting as directed. City of San Rafael—Special Library Parcel Tax Committee Report The Committee's sole function shall be to review expenditures of the revenues from the Special Library Services Parcel Tax adopted by Measure C on June 8 2010 to ensure the monies have been expended in accordance with the authorized purposes of Measure C. Based on the Library staffing proposals provided by the Librarian in September 2010 and the subsequent expenditure status reports, the Committee believes that the actual expenditures have been in accordance with the authorized purposes of Measure C. The downtown library's hours were increased from 48 hours per week to 59 hours, including 4 hours on Sunday. Pickleweed's hours were increased from 30 hours to 35 hours. The increase in hours required increased staffing equivalent to 6 FTEs, including a children's librarian. Library patrons have been pleased with the increased hours and services. Other expenditures were for physical and digital materials. The library has experienced increased usage as a center of our community. We do have some concerns regarding the funds set aside for capital improvements. While the Committee agrees that the decision to set aside money for the construction of a new Library sets a laudable goal, it is unclear from the language of Measure C that this was authorized by the voters in approving the phrase: "setting aside funds for necessary facility improvements". Further, this yearly set aside of well over $100,000 from Measure C revenue, gives rise to several issues: 1. Improvements can be interpreted two ways — construction or repair and renovation. 2. Should the economy continue to provide challenges to the Library's total budget, would some or all of this fund be made available to maintain hours and services? This is a concern because voters specifically approved Measure C's proposed goal of increasing hours and services. Holding a large fund of monies in reserve, while imposing cuts in hours and services, would seem to subvert the voters' intent in passing Measure C. 3. Having the Library set aside a separate fund for facility renovation and repair demonstrates both prudence and foresight, but it is not clear whether or how this fund will be made available should the need for facility renovation or repair arise during the period covered by Measure C. This is a further concern since the concept of setting aside funds for "necessary facility improvements" has also been specifically approved by the voters, and leads to the inference that when the need for repair or renovation arises, Measure C funds will be used for that purpose. 4. If at the end of the period covered by Measure C, the economy remains in difficulty, and cuts in hours, services, and personnel have been imposed, and the voters are again asked to approve a Library parcel tax, what will be the implication of having a large fund of monies, held by the Library, for the purpose of constructing a new facility? Voters may consider this set aside a wise use of their money, or they may be reluctant to approve more funds for an institution holding a large sum in reserve. And, if such a measure is on the ballot and fails to pass, what will happen to the fund? 5. The Committee is concerned that because of budgeting constraints the library has thus far been unable to provide additional outreach to San Rafael's public schools, as promised during the Measure C campaign. The Committee wholeheartedly supports the concept of constructing a new library and applauds the City Council's dedication to this project. However, the amount of money set aside, assuming the economy does not improve, will force the library to cut hours and services expected by voters from Measure C. Another concern of the Committee is how to ensure that the Library maintains its share of the City's General Fund. The committee concluded, in accordance with the intent of the resolution, the Library continues 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 Committee reviewed a breakdown by department of General Fund Actual Expenditures for Fiscal Years 2009-10 and 2010-11 and the Budget for Fiscal Year 2011-12. The Library's share of the 2009-10 Actual Expenditures was 4.41 %, and was lower in 2010-11 and the current year budget. However, the General Fund includes expenses relating to changes in personnel that are mandated and unpredictable. Although the 2010-11 Actual total for the General Fund is greater than the 2009-10 Actual Total, all departments had to make staffing cuts. The Committee investigated the City General Fund budgeting process and found the best methodology to determine "proportionality" is to calculate the percent of the Fiscal Year Deficit that was ameliorated by Library cuts. FY 10-11: The total General Fund Deficit was $5,206,800. Excluding cuts due to furloughs, the total was $4,701,800. Library cuts totaled $241,000, plus $41,000 in PLF funds contributed, for a total of $282,000, or 6% of the total cuts, excluding value of furloughs. Offsetting the above cuts, the Library was over budget at the end of FY 10-11 by $86,694, reducing the FY 10-11 contribution to $195,300 or a net of 4.2%. FY 11-12: The total General Fund Deficit is $4,494,742, or $3,048,294 excluding compensation cuts. Library cuts are $0. The expected contribution of $60,000 in PLF funds was not possible as the funds were not available. December 6, 2011 Respectfully submitted: Barrett Schaefer, Chair Z Carol Manashil, Vice -Chair Peter E. Lef, Committee Member Phyllis Brinkerhoff, Committee Member. Glena Coleman, Committee Member