Wednesday, July 8, 2009
Program Room 2B
Tom Bunger and Antonia Matthew
Vice President Fred Risinger called the meeting to order at 5:48 p.m.
Sara Laughlin reviewed the budget calendar stating that at the Special Session of the General Assembly many of the changes to the budget calendar used last year were codified. This means that MCPL’s budget must be advertised for the first time before September 2, requiring approval along with the Appeal for Excess Levy at the August 19 Board meeting. Sara suggested that the public hearing be held at the September 16 regular Board meeting. The Assessed Valuation Growth Quotient (AVGQ) has been released and is 3.8% as opposed to 4% last year. The Assessed Valuation should be released by August 1. After advertisement, the budget can be lowered but not raised.
Sara Laughlin discussed adjustments to line items in the proposed budget. The expected revenue ($574,434) from the appeal for replacement of 2009 shortfall has been added into the Operating Fund budget. Steve Moberly asked who instructed that it be included in the budget. Bonnie Estell explained that the state budget form is set up so that it must be included and the appeals form checklist asks if it has been appropriated, advertised, and a resolution approved. Sara Laughlin noted that the appeals revenue has been added to only one-time expenditure lines and not to any areas such as personnel services. Fred Risinger asked when we will know if the appeal has been approved. Sara explained that we likely will not know until April 2010, when we will know if the overall budget has been approved.
Randy Paul suggested that there are alternative ways to spend the budget revenue. Randy stated that he supports pay raises for the staff but is concerned with the timing and possible threats to staff security. Regarding funding concerns, he listed the loss to operating budget this year due to error, the expected County Option Income Tax (COIT) loss, and uncertainty with property tax income. He noted that other governmental units were cutting personnel costs while MCPL proposed to increase. He reiterated his belief that loss of income would increase uncertainty. He felt that every new dollar spent would cause future cuts. He discussed the effects of layoffs in terms of human loss. Randy felt that staff should be surveyed and stated that he has received e-mails from several staff stating fears that salary increases would lead to layoffs. Randy suggested taking the salary study recommendations and spreading implementation out over four years, with benchmarks allowing a stepping up in schedule if the appeal is successful and if property tax income was consistent. He reiterated that 1) staff should be surveyed; and 2) a different payout schedule should be considered.
Fred Risinger questioned the need for a survey as well as why it was proposed now. Steve Moberly was concerned that the Board was moving into an area of micro-management and felt that all issues could not be put out to survey. He also noted that every budget was an estimate. He urged putting the matter to rest, moving forward with the budget, and letting the director run the library. Randy Paul said that this was a unique economy and that he was not suggesting micro-managing but rather budgeting. Fred Risinger said that when we learned how much money we would receive, adjustments could be made. He also felt that there was no need to frighten staff by constantly referring to possible layoffs. Randy Paul stated that we are in a very different situation than what we’ve faced in the past and asked what will be done if there is no option other than lay-offs. He felt it should be discussed up front with staff input. Steve Moberly stated that no information has come from management that even mentions layoffs.
Sara continued her discussion of changes to the budget. Personnel services have been decreased slightly but the decrease does not reflect layoffs or downsizing. Rather some of the “play” has been taken out of the estimate. Some positions have been budgeted in the past but due to turnover, the budget has not been completely spent.
Steve Moberly asked whether there were any changes to the 4000 category (specifically Books). Sara stated that the category has not been changed; is about 15% of the budget; and has about a 1.5% increase for next year.
Randy Paul asked why health insurance was still shown with only a 4% increase and why we were not looking at the real numbers. Sara explained that the budget allows a 3.8% overall increase and the real health insurance costs for 2010 are not yet known. She added that the Long-range Financial Planning Committee has suggested looking at the total compensation package (salary, insurance, retirement, paid time off, work week hours, etc.), but that review has not yet begun. Randy Paul said the Board had worked hard to get health insurance where it is today and staff should not lose those benefits. Sara noted that choices may need to be made in the future. The challenge is to figure out ways to continue service with the available money. Randy asked when the serious choices would be discussed. Randy stated that Bonnie Estell had answered “yes” to his question about layoffs. Steve Moberly noted that Bonnie did not appear to agree with this statement. Bonnie approached the microphone but did not speak, as the discussion took another course.
Steve Moberly stated that at the end of the year, the same as every year, when some categories would be under-spent and some over-spent, adjustments would be made. Options could be considered such as whether to make a LIRF contribution. Sara Laughlin added that if we have an increase in any line item that cannot be covered, it will have to come from another line item. She again stressed that we are advertising a total budget only. No line items are included in the advertised budget. Kari Isaacson stated that she would prefer to wait until we see what funds are available and what increased costs we face before we have additional discussion. Dave Ferguson noted that even if health insurance were to increase by 20% it would still be a very small percentage of the overall budget and could be dealt with at that time. He added that the Board could not commit to not changing benefits and felt that if Randy believed more money should be put into health insurance, he should make a motion to do so at the next meeting. Fred Risinger concurred with this suggestion.
Sara Laughlin presented the resolution to transfer funds to Debt Service Fund noting that the required amount will be $112,000 rather than the $100,000 shown in the draft resolution. Steve Moberly asked whether the approved resolution to seek loans covered this matter. Bonnie Estell explained that the loan the Board approved last month to cover operating expenses had not been necessary, since 80% of the Operating Fund and Debt Services Fund revenue was received before the end of June; however, debt service payment is due in July, before the remaining 20% becomes available, thus requiring this temporary loan from LIRF. Steve Moberly questioned paragraph 1 of the resolution. Bonnie Estell agreed that it was not relevant and should be removed. A revised resolution will be presented for action at the regular Board meeting.
Sara Laughlin announced that due to the time required for preparing variance requests from the City of Bloomington, we are behind in getting construction documents ready for bid. She asked whether an August 5 meeting to approve bid documents would be possible. The Board felt this would be possible and preferred combining it with the August work session. Sara Laughlin will contact each Board member regarding this matter.
Sara Laughlin announced that the HAPLR ratings have been published and MCPL is again listed as one of the Top 10 American Libraries serving 100,000-250,000 population. The library ranked fourth.
Randy Paul noted that he had seen one of the Associate Director presentations and asked whether Sara Laughlin would be making the final decision. Sara confirmed that she will do so but will receive input from staff and Board members.
None.
Meeting adjourned at 6:50 p.m.
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Updated:
August 5, 2009
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