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HomeMy WebLinkAboutFin Annual Financial Report on Library Assessment Funds (Measure C)Agenda Item No: 3.1 Meeting Date: December 17, 2012 1 1 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: MANAGEMENT SERVICES Prepared by: Mark Moses 6i) Interim Finance Director City Manager Approval• SUBJECT: FY 2011-12 ANNUAL FINANCIAL REPORT ON LIBRARY ASSESSMENT FUNDS (MEASURE C) RECOMMENDATION: Accept Report as Presented. BACKGROUND: On June 8, 2010, the citizens of San Rafael approved a special library services parcel tax "to provide a consistent, locally -controlled funding source, augmenting current general fund allocations for the San Rafael Library, for expended hours, improved facilities, equipment, materials and services for children, teens, and adults." The tax was applied at a flat rate of $49 per parcel for single family residential and non-residential parcels and $49 per parcel plus $10 per living unit for multiple -unit residential parcels. This tax was approved for a period of seven years, with oversight by an independent citizens committee and with exemptions for senior citizens. Adoption of Ordinance 1883 in 2010 established Municipal Code Section 3,36. Section 3.36.030 imposes the rates pursuant to City Charter and Government Code Section 53717. Section 3.36.040 imposes the annual levy for the seven year period beginning in fiscal year 2010-11. Section 3.36.080 provides for the establishment of a Special Library Parcel Tax Committee to review the collection and expenditure of tax revenues collected. At their regular meeting on November 1, 2010, Council passed Resolution 13073 approving the Library Department's spending plan and reorganization to implement the Special Library Parcel Tax funds. Exhibit A to the resolution presented a narrative description of the elements of the plan and Exhibit B presented the seven year budget for the tax funds, extending from FY 2010- 11 to 2016-17 (see Attachment 1). AREA - -------- FOR CITY CLERK ONLY File No.: ef Council Meeting: j 117 1 1 -2- Disposition: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 FY 2011-12 Review The Special Library Parcel Tax pnoQrmnn ioaccounted for inaseparate fund and segregated from all other funding sources. /\sOfJuly 1.2U11.the beginning fund balance inthis fund was For the fiscal year 2011-2012 budget, tax revenue was estimated at $875.500. /\Ctug| tax receipts for 2D11-12totaled $887.081 and interest earnings onthese receipts added $1,427.for total revenue nf$889`1OG. For fiscal year 2011-2012. expenditures were budgeted at $783.900. This budget included building nO@iOteOGOQ8 aUOvv@Oc8 Of $12.740. Actual expenditures for the fiscal year totaled $794.8OO.including $23.O83for building maintenance. As of June 30. 2012 the fund's ending balance was $560.726. Components of this balance * o3o�e|neoemv�of�4g5�O0O� —'- - -- . • building maintenance reserve Vf$04.738;and • unassigned fund balance of $988. FY 2012-13 Bud-ge The revenue budget is estimated at $888.500 and expenditures are $807.588. the fund's ending balance as of June 30. 2013 is projected to be $639.040, Components of this balance • increase b]capital reserve Of$40'185for @ total reserve Df$541.185; • keep building maintenance reserve at $04.738 * unassigned reserve of $33.707. The Library Director has prepared a 2013-2017 Strategic Plan and Special Library Parcel T budget in a separate Staff report. I FISCAL IMPACT: 0111" 1UTWERT4 ATTACHMENT 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING THE LIBRARY DEPARTMENT SPENDING PLAN AND REORGANIZATION TO IMPLEMENT THE SPECIAL LIBRARY PARCEL TAX (MEASURE C) WHEREAS, the citizens of the City of San Rafael enacted a Special Library Parcel Tax at the special municipal election held on June 8, 2010; and WHEREAS, the Special Library Parcel Tax takes effect in the fiscal year 2010- 2011, running for a period of seven years; and WHEREAS, the tax is estimated to amount to $820,000 per year for the period of the tax; and WHEREAS, the Library Department has prepared a plan for spending those funds in accordance with the ordinance establishing the Special Library Parcel Tax; and WHEREAS, the Special Library Parcel Tax Committee, established by the City Council to provide citizen oversight, has expressed its unanimous support of the spending plan; and WHEREAS, the San Rafael Public Library Board of . Trustees has also unanimously voted in support of the plan; and WHEREAS, the plan was presented at an open public meeting of the City Council on Monday, October 18, 2010, resulting in suggestions for further refinement and additional information; and WHEREAS, staff has revised the plan to reflect the City Council's comments; and WHEREAS, staff has prepared a seven-year budget for implementation of the Im NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES RESOLVE, DETERMINE AND ORDER AS FOLLOWS: The plan dated November 1, 2010 for implementation of the Special Library Parcel Tax, attached hereto as Exhibit A and incorporated herein by reference, and the seven-year budget attached hereto as Exhibit B and incorporated herein by reference, are hereby .sit • -•ie LibragnDirector is directed -to -begin •, ste-ojs immediatelW to see that the plan is implemented. I, Esther C. Beirne, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a reg6lar meeting of the City Council of the City of San Rafael, held on Monday, the 1't day of November, 2010, by the following vote, to wit: AYES: Councilmembers: Brockbank, Connolly, Heller, Levine & Mayor Boro NOES: Councilmembers: None ABSENT: Councilmembers: None W Esther C. Beirne, City Clerk SPECIAL LIBRARY SERVICES PARCEL TAX IMPLEMENTATION PLAN Prepared by: David Dodd, Library Director Dated: November 1, 2010 INTRODUCTION: The Special Library Services Parcel Tax Implementation Plan set forth herein is the product of work by the staff of the San Rafael Public Library, and has been vetted and supported by the City Council -appointed Special Library Parcel Tax Committee (aka Measure C Oversight Committee), as well as by unanimous vote of the Library Board of Trustees. It is based upon the work of the Library Operations Review Task Force, and on user surveys done by that body which were included in the final report of the Task Force to the Council. We believe this plan to be true to the intent of Measure C, with a clear emphasis on restoring lost hours and positions, and improving the materials budget, balanced against setting aside prudent sums for the future capital improvement and repair needs of the San Rafael Library. 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: 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: EXHIBIT A 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. The City's Finance Director has estimated that the City Will collect approximately $820,000 annually in available funds, after senior exemptions and County Assessor's fees, and expects that amount to remain fairlystable throughout the course of the tax. INTENT: The intent of the spending plan is two -fold. First, resources are allocated to provide sufficient staffing and budgeting for materials to allow for the greatest flexibility over the coming seven years of the life of the tax, so that the Library can respond to any changes in demand or usage. We have specifically worked, over the past two years, on cultivating a greater degree of cross -training among staff in order to allow for the most efficient use of our scarce staff resources, and will continue to do so. All of the positions proposed are to be full- fledged, well-trained staff members, in order to make the plan fluid and interoperable among different parts of the Library. Second, there remains a long standing need to expand the Downtown Library to meet current technology, space and modern programming needs. Studies have been done for over twenty years, noting a larger facility is required to better serve the San Rafael and neighboring populations who regularly utilize our Library. This new tax provides opportunities to set aside funds to commence important early capital improvement work. Additionally, intentionally balancing facility needs with expanded operations provides capital for repairing elements such as carpeting, and also establishing a sinking fund which can be leveraged to attract foundation dollars, grants and other resources. Open hours at the Downtown and Pickleweed libraries Library staff, working from a history of hours cutbacks and the position eliminations that went along, developed a plan which proposes increasing the open hours at the Downtown Library from 48 to 59 hours per week, and at the Pickleweed Library from 30 to 35 hours per week. To do this, we are proposing adding the necessary staffing, as follows: middle management position, in order to provide oversight for Technical Services, Circulation, and other appropriate mid -management tasks such as community liaison and assistance with administration. The creation of a mid -management position will bring increased capacities for leadership, vision, and planning to the Library, and free up the City Librarian to provide more pro -active leadership as well. Children's Librarian (.75 at $81,090): Needed to add open hours, outreach, and programs to the children's department downtown. Adult Librarians (1.75 at $175,876)): Needed for additional hours on the reference desk. Second (filled at .75) position will replace public desk hours lost upon anticipated retirement of a Supervising Librarian. Library Assistants (2.66 at $171,282): Increasing several part-timers' hours to full-time in order to continue staffing circulation desk at current levels; and to provide for increased workload in Technical Services due to increased purchasing of materials. Also adding a full-time Library Assistant for Circulation / Technical Services for increased open hours. At Pickleweed, add one Library Assistant to provide for increased open hours. Library Aide (.5 at $22,680): Restore an eliminated position to assist with increased workload in Circulation. Change one Senior Library Assistant position to a Librarian (net cost $17,822), in order to provide for increased staffing flexibility—allows for single -staffing bythis position where needed. Hours added Downtown include Sunday hours (1pm-5pm); increased evening hours (open until 9 pm Monday through Thursday); hours added at Pickleweed include an additional evening, and earlier hours on two days. The addition of 16 hours to the current schedule will change the scale of all Library operations, including selection and acquisition of materials, processing, circulation, check-in, re -shelving, etc. The sum of the outputs from the added positions, therefore, is much greater than the 14 hours of open time, and extends into many areas of Library operations. u Library Cards for San Rafael school children Planning for this is underway, based upon the example of the Salinas Public Library, which instituted a successful plan to put a library card in every child's pocket throughout Salinas, by working with the local schools. a Rental fees We have eliminated fees for non-fiction D. in order to provide increased availability of these materials, especially for the education community. However, at this time, we do not plan to completely eliminate rental fees for feature film and television series DVDs, as well as for audiobooks, which provide a self-sustaining basis for the collection. We will participate in the City-wide Master Fee Schedule Update process, and will continue, to monitor industry trends for the delivery of these materials which may change our approach to charging fees. • Materials budget The proposed budget puts materials expenditures for SRPL, including books, AN, periodicals, and databases, at approximately $219,000, which is much closer to the goal of 10% than previously. This also allows for the Friends of the Library to provide a better source of support for programming and other needs, rather than for a basic operational expense such as books. We have already negotiated contracts for a number of restored and additional databases. • Online homework assistance and job search service This is underway. We are negotiating with a vendor who can provide a package including both of these aspects, serving the full spectrum of lifelong learning and career assistance. o Marin Literacy Program We are looking at ways to include the needs of the Marin Literacy Program as a basic part of our materials budget. More materials for literacy learners and tutors will be purchased and be part of the regular collection, available throughout MARINet. o Capital improvements, equipment and facilities We plan to have a fund set aside through the course of the tax period which will contain enough to fund a community heeds assessment, initial architectural planning, and any necessary grant -specific expenses. Concurrently, the San Rafael Public Library Foundation will begin a concerted effort to determine the availability of private and community funding for an improved facility. Within the next several months, the Library would like to call "for a Council Study Session to coordinate efforts towards library facilities. Should necessary interim expenses occur, this fund may also be tapped to augment available City capital improvement funds, such as for new carpeting. o Other e*orts Staff is engaged in planning for other recommendations included in the Task Force report, including increased partnerships with local schools (specifically, a library card drive and a co-authored grant to fund one or possibly two liaison positions with the schools), along with our elimination of fees for non -feature film DVDs, in order to make access to instructional materials easier for local educators. H funded by County and donor revenues. We also receive support, especially for children's programs, from the Friends of the Library. CAPITAL ACCOUNT: Given that the above budget is for an annualized amount, and the fact that we will begin implementing the personnel portions at mid -budget year, we will have a large portion (approximately $300,000) of the staffing funds unspent in the current year. When combined with the $110,000 thousand noted above, the first year funding will jump-start the capital account, to be set up as a project account, with these funds. Over the course of the tax, we plan to set aside this initial year sum, and annual contributions from the tax, to achieve $1 million ($100,000 per year, plus or minus) to be held for a new and improved Downtown Library sinking fund. We also anticipate the need to spend some amount during the period of the tax on necessary facility repairs or improvements, and will plan to set aside a total of $250,000 over the seven years will be sufficient for equipment and facility repair needs. 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Department Head (signature) (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY AGENDA ITEM: jqp r` City Manager (sig ture) l• ...•s D REMARKS: APPROVED AS TO FORM: City Attorney (signature)