Wednesday, September 9, 2009
Program Room 2B
Mark Brown, Tom Bunger, John Steinmetz, and Kurt Zorn.
Vice-President Fred Risinger called the meeting to order at 5:45 p.m.
Steve Moberly requested that agenda item #3, Report of Long-Range Financial Planning Committee, be addressed first in consideration of non-library committee members who were present. The Board agreed.
Fred Risinger welcomed and thanked committee members Mark Brown, John Steinmetz, Kurt Zorn, Steve Moberly, Bonnie Estell, Margaret Harter, and Sara Laughlin. Other committee members were Anita Harder, Jim Harvey, Curt Simic, and Linda Simon.
Sara Laughlin provided background on the committee’s work. The two charges were to assess the long-range financial outlook for the library and to make recommendations for sustaining services. The committee met four times and formed three sub-committees (Fiscal Outlook, Efficient Operations, and Fundraising). The main factors affecting the library’s future funding are: 1) loss of approximately $500,000 County Option Income Tax (COIT) in 2012 when the library’s mortgage debt is paid off; 2) property tax cap; and 3) the current economic downturn. The committee discussed core services based on the 2008 Community Survey. The top ranking services were providing educational/literacy; access to free information; quiet oasis for reading and study; and resource for reading/listening/viewing pleasure. The committee also reviewed current funding including fees and fundraising.
Sara Laughlin introduced Mark Brown who discussed the conservative and best case funding scenarios for the library. Mr. Brown noted that the two main drivers of non-fee (i.e., tax) income are property taxes and County Option Income Tax (COIT).
The conservative scenario assumes that the economy does not improve and property tax income continues to be constrained by property tax caps. This could result in flat values or slight decreases in some areas. Income tax collections in the state have been falling in recent years but Monroe County is somewhat insulated. 2.5% annual growth in COIT is possible. Overall result would be essentially zero growth over the next 8-10 years.
The best case scenario has property tax growing at historical average of about 3.5%/year with COIT increases being slightly above that.
Randy Paul asked what the worst case scenario would be. Mark Brown stated that there could be negative growth but noted again that Monroe County has historically remained somewhat insulated. He also felt that, over the long run, the state would likely intervene in cases of significant revenue shortfall for local entities.
Sara Laughlin read the 10 recommendations made by the committee:
On behalf of the board, Fred Risinger thanked Sara and the committee for their work and report.
Randy Paul also thanked and commended the committee. Randy felt that the 10 recommendations combined would mean a sweeping change for the library; it would be more like a business model than a non-profit model; fund-raising would place the library in competition with non-tax funded organizations. He felt uncomfortable with this prospect. The Friends of the Library role would be dramatically changed. He felt that previous administrations had attempted to take a business model approach and received resistance from the community. He asked how the Friends felt about doing annual fundraising.
Sara Laughlin asked Kurt Zorn to address the question of competing with non-profit agencies. Mr. Zorn felt that the distinction between tax-supported and non-tax supported agencies was not a stark distinction. Many non-profit agencies receive tax credits and various other exemptions.
John Steinmetz, Friends Treasurer and member of the committee, stated that the Friends Board had not yet seen the report, but noted that historically the Friends had not wanted to do major fund-raising or endowment building.
Randy Paul felt that the public would view us differently if all recommendations were implemented; that the library would be a smaller library in terms of staffing; and recalled that according to the community survey, the top-ranking asset of the library was the staff. He felt that the community should be brought into the discussion. He asked how long it would take to get a development program in place. Mr. Zorn stated that it would take time to grow such a program but that it should be started right away. Margaret Harter, member of the fund-raising subcommittee, noted that the library has a good database sufficient to start an annual campaign, but that it would require support from both the Board of Trustees and the Friends Board.
Dave Ferguson asked when the $500,000 decline in COIT would occur. Sara Laughlin explained that it will occur in mid-year 2012 leaving only three years’ budgets to prepare. She felt that the problem should be attacked incrementally by starting fund-raising and fees now while also constraining expenditures over the next three years.
Randy Paul asked whether decreases would be made in the 2010 budget. Sara Laughlin stated that she is recommending that we try to save money during the year rather than re-work the entire budget for 2010. Mark Brown concurred with this idea, stating that the library should strive to spend less next year thereby identifying future savings.
Randy Paul asked how the committee viewed the next five years. Mr. Zorn felt that the library could not remain in a steady state and should plan ahead for the known funding decreases in the future.
Randy Paul asked how the committee views the Rainy Day Fund. Mr. Brown felt that the library should put as much money as allowed into the fund and hold it for emergencies or unforeseen operating costs.
Regarding Randy Paul’s suggestion about community input, Steve Moberly agreed that the library needs to share information with the community but felt that times have changed and previous administrations did not have to deal with property tax caps or a national recession. He felt the community would understand the necessity of changes.
On behalf of the Board, Fred Risinger again thanked the committee for their service.
Sara Laughlin reported that the request for bids for the Main Library renovation had resulted in 10 bids. The Library is required by law to accept the lowest responsive and responsible bidder. The bids were reviewed by library administration, attorney Tom Bunger, and the architects. References for the lowest bidder have been checked. Administration recommends acceptance of the lowest bid in the amount of $771,100 from 3D Professional Contractors from Lebanon, Indiana. The $771,100 bid is for Phases 1, 2, and 2A, including Alternate #2 Children’s Dept. glass partition, Alternate #8 Canopy over drive-up window, Alternate #9 Grant St. drainage, Alternate #10 Widening Grant St. sidewalk, and Alternate #10 Adding three parking spaces. It is recommended that the remaining $44,000 be held in a contingency fund for the project. Other alternative items could be added later with change orders, should funding allow.
Sara also noted that the Children’s Department will be closed from November 1 through December 10 in order to expedite the renovation. The Children’s Department will be temporarily located in the first floor meeting rooms 1B and 1C.
Sara Laughlin explained that the Board must adopt a resolution for the formal appeal of the $861,651 budget shortfall. Steve Moberly asked whether administration was confident that the dollar amount was listed on the correct line of the form. Bonnie Estell confirmed that, based on additional explanations related to the form and discussions with Department of Local Government Finance representatives and consultant Beth Henkel, it appears that the shortfall is related to advertising error rather than erroneous assessed valuation and administration is confident that the form is correct. Steve Moberly also asked about the question pertaining to transfers to the Rainy Day Fund during this year or previous year. Sara Laughlin confirmed that no transfers have been made. She thanked Steve Moberly for assisting in finding Beth Henkel, whose advice was reassuring in planning for the appeal.
Sara Laughlin presented a policy for test proctoring by MCPL staff. Sara noted that Library staff has proctored exams which were primarily paper exams in the past. Now more institutions are using Internet-based exams which require e-mailing passwords and protocols to the Library and are requiring that the exams be proctored by a librarian. Ivy Tech provides proctoring at a rate of $50/exam. MCPL received approximately 15 proctoring requests in August. The new policy states that the Library will charge a fee, to be set annually by the Board. Currently MCPL does not charge a fee but Sara’s intention is to request a fee later in the year when she presents a full list of services and fees.
Steve Moberly asked why we should wait two months to start charging a fee. Sara Laughlin noted that the suggested fee is $30. Steve Moberly felt the fee should be approved along with the policy.
Randy Paul was concerned that many students could not afford such a fee and felt that by charging a fee we might be stopping people from trying to improve their lives. Randy felt that charging a fee would add relatively little to the Library’s revenue.
Dave Ferguson felt that some sort of assistance fund could be established for hardship cases.
Steve Moberly felt that over the course of the year the fees could result in a fairly substantial amount and felt that this was a perfect example of a point where the library needs to be compensated for some of its extra services.
Sara Laughlin added that these students are paying for the classes.
Melissa Pogue felt that these students are paying for the classes and should pay for the proctoring. She felt that a $50 fee would be appropriate.
Sara Laughlin reported that this is a State Library initiative. The General Assembly appropriated $1 million/year for the 2010-2011 biennium to support Internet access. The State Library has established a hierarchy for distributing the money in the following order: 1) members of the consortium who filter; 2) members of the consortium who do not filter; 3) libraries who filter but are not consortium members; and 4) libraries who do not filter and are not consortium members. Currently we are in the fourth category and likely would receive no funds. Libraries of comparable size in the consortium are receiving between $40-$60,000 per year. Joining the consortium would move MCPL up to second priority. We could still continue to not filter. One concern is whether we would have to change Internet service providers and this will not be known until after the service is bid out in December, after the deadline for submitting our consortium membership forms. Sara’s recommendation is to approve a resolution to join the consortium. It would still be possible to drop out if we decide to do so later. This would not be a contractual agreement and there is no cost to join. The State Library has an interest in libraries having a technology plan and in saving money through state-wide purchasing agreements.
Randy Paul requested information on the types of tests/institutions involved in proctoring. He publicly thanked the City of Bloomington Plan Commission, Board of Zoning Appeals, and Board of Public Works for approving MCPL’s variance requests.
Randy Paul asked about efforts to relocate the garden. Sara Laughlin will be meeting with the gardening team next week.
Melissa Pogue asked about the status of going “paperless.” Sara Laughlin reported that it is technically feasible. Five Board members preferred online delivery of Board documents; two Board members preferred to continue receiving paper copies. Her goal is to do a trial run for the October 14 Board work session. Sara suggested a practice session at 5:00 before the meeting to go over procedures.
Sara Laughlin called attention to budget packets that have been distributed and suggested keeping the budget packets with monthly packets for easy reference.
Sara Laughlin announced that, in the absence of an associate director, Mickey Needham has been appointed as project manager for the Main Library renovation for one year beginning October 1. Penny Gillie will serve as acting Ellettsville Branch manager. Stephanie Holman will continue to focus on programming. Two temporary positions will be filled: a reference assistant position and a reference librarian.
None.
Meeting adjourned at 7:25 p.m.
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Updated:
October 1, 2009
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