Wednesday, August 5, 2009 (following Special Board Meeting)
Program Room 2B
Tom Bunger.
President John Walsh called the meeting to order at 6:30 p.m.
Sara Laughlin reported that she and Bonnie Estell met with Bob Purlee, Department of Local Government Finance Field Representative, for the annual budget review. As a result of that meeting a few changes have been made in the budget.
The “Notice to Taxpayers” advertising the budget will show a Net Assessed Valuation of $5,031,902,174, a total that is slightly lower than recommended by DLGF. This number is used to calculate the tax rate, which limits the amount of money that can be received. The lower the Net Assessed Valuation, the higher the rate. Ultimately, the state will set a rate to raise the dollars requested in the budget, so it is prudent to keep the NAV low and the tax rate high, in order to ensure that the budget can be funded.
Purlee confirmed that the appeal total must be included in the advertised budget in order to be included in the rate and appropriated. Purlee stated that Indiana law guarantees that the Library will receive half ($287,000+) of the funds lost in 2009 due to incorrect Net Assessed Valuation. We are appealing to restore the other half of loss 2009 revenue, as well as the loss of $587,434 in maximum levy base for 2010, so the total appeal will be for $861,651. This new information changes the budget slightly from the one previously presented. All appeal funds are now shown in the Operating Fund line item 4440. The Rainy Day Fund now shows $26,488 in line 4440 to bring it up to the 3.8% increase allowed.
The Budget Calendar has also been adjusted. The Board must wait 15 days after the County Council recommendation before it can adopt the budget. The County Council meeting dates have not yet been set but are likely to be the week of October 5. The library Board must adopt the budget before November 2. Sara suggested moving the October Board meeting to October 28. This date will be determined later.
In response to the Board’s request to increase the budgeted amount for health insurance from 4% to 10% (approximately $27,000), she reviewed a list of five options: 1) Reduce the compression adjustment in salaries from 0.4%/year to 0.2%/year; 2) Reduce operating supplies budget by $27,000; 3) Reduce materials budget by $27,000; 4) Reduce transfer to LIRF by $27,000; 5) Adopt Option 1, and, if appeal of 2009 shortfall is successful, use a portion of appeal funds to increase adjustment back to .4%.
Discussion ensued regarding the options. Sara explained that salary increases benefit all staff while health insurance benefits about half (mostly full-time employees with a fairly rich plate of benefits). Steve Moberly felt that good options had not been presented. He had hoped that the $27,000 would be found somewhere other than in salaries and believed that it could be found by taking smaller amounts from various budget lines, i.e., professional meetings. He noted disappointment with the options. Randy Paul agreed. John Walsh stated the Board consensus that it would like to see smaller sacrifices in numerous areas and that while it does not believe that a 10% increase for health insurance will be sufficient, adding that amount now will make it easier to deal with any larger rate increase later.
Sara Laughlin reminded the Board that a budget for advertising must be approved at the regular August meeting.
Randy Paul noted that he had discussed with Sara Laughlin the possibility of waiting until after the health insurance rate has been received to discuss salaries. The Board approves a salary schedule in December, so nothing is completely resolved until that has been accomplished. John Walsh noted that the Board had already passed a motion to implement half of the Compensation Plan as recommended by the Singer Group.
None.
Meeting adjourned at 7:00 p.m.
Contact
Us Monroe County Public Library, Monroe County, Indiana ° (812)349-3050
Updated:
September 9, 2009
° http://www.monroe.lib.in.us/board/200908wrk.html
