October 2010 Minutes

WILLIAM K. KOHRS MEMORIAL LIBRARY

BOARD OF TRUSTEES MEETING

October 28, 2010

The Kohrs Memorial Library trustees held a regular meeting on Thursday, October 28, 2010. Present were board members Sheila Thompson (Chair), Rose Marie Bradshaw, Kathy Foster, Tom Wang and librarian Kate Potter.

The board tabled all regular agenda items in order to deal with budget issues.

Sheila explained that she and Kate had been called to a meeting at city hall on Tuesday, October 26, 2010 where they were informed of two things:

· The city cut $5,000 more from the library budget.

· The board then needs to cut approximately $21,000 - $16,063 from the FY 2010 and the rest to make up for a projected shortfall in the FY 2011 budget.

Kate reported that she called the state library and spoke with Director of Statewide Library Resources Bob Cooper and statewide Consulting Librarian Tracy Cook. (See Attachment 1). Bob Cooper said the city did not have authority to cut the $5000 – only the board had that authority. Also, the board can request a written report and budget outline as to why the further cuts are necessary. Kate took this information to the city.

Sheila noted that it remains unclear where the shortfalls came from. Sheila has examined her board documents back 2007 and noted that reporting from the city clerk has been problematic. She is concerned about cutting nearly 22 percent of the library budget without detailed reporting from the city.

The board then examined what state funding the library receives and whether that funding will be contingent upon meeting certain library standards. Sheila’s research indicates that funding may be affected if the library cuts hours and services. The amount the library gets yearly from the state library is approximately $3,000. (See Attachment 2).

Kathy asked whether the city accrues funding from unused vacation and sick leave, (re the $10,000 from a former director’s retirement). Board members agreed this is a good question to ask the city.

Sheila said the city maintains it was the board’s responsibility to accrue funding for the retirement payout. (Note: Bob Cooper, of the state library agreed that is a board’s responsibility.) Sheila noted, however, that the retiring director had been notifying the city clerk since 2007. The clerk did not notify the board, which indicates a lack of communication between the two entities.

In a response to a question from Kathy, Kate said that the former director received one-quarter of her sick leave and all of her vacation pay when she retired.

Tom asked what involvement the library foundation could have in the current financial situation. Sheila noted that foundation funding is likely earmarked for certain purposes and can’t be put into the general fund.

Rose Marie remembered that, despite repeated efforts by the former director to get updated revenue/spending information, it was not provided by the former city clerk. Sheila agreed that the city had not provided the necessary information to the board that could have averted the current budget problem.

Sheila also expressed concern that the only way to cut $21,000 from the current budget is to cut into employee salaries, which would have consequences for library service.

Kate questioned whether the cuts could be required without proof of where the budget went over. And, in support of the need to keep staffing levels at the library, Kate provided a report on patron usages and circulation numbers which was compiled by Cindy Grieshaber. (See Attachment 3).

Tom asked about possible Friends of the Library funding – which is also earmarked. Rose Marie asked about county contributions. The county provided $5,000 in funding for FY 2010. Sheila reported that she had visited with Powell County Treasurer Lisa Smith, and was told the library fund currently contains $48,881, equivalent to 18.86 mills. It is unclear whether all of the money has been collected, or if the figure is partially expected revenue.

Sheila added that the mayor asked her to come alone to city hall to discuss this matter. Sheila declined, stating the entire board needed to be involved, and information needed to be provided in writing. Just prior to the start of this board meeting Mayor Mary Ann Fraley dropped off a document reiterating its demand for the cuts, but still not providing the proper budget documentation. (See Attachment 4). She reported that the mayor claimed the board was informed in February or March, 2010, of revenue shortfalls, when city finance committee chair Ed Hebbe attended a board meeting. Minutes from the February 2010 board meeting indicated that he attended, but do not reflect any mention by him of revenue shortfalls that would affect the library budget. Rose Marie remembered him asking that library staff do other jobs, such as shoveling sidewalks, etc.

Sheila also noted that the board had submitted a preliminary FY 2011 budget – with no increase from the previous year – to the city clerk early in 2010, but never received any confirmation or budgeting documentation.

Sheila suggested the city needs to clarify whether any other departments are being asked to make large budget cuts, or just the library.

Tom and Sheila both cautioned against making a commitment to any budget cuts, without more research and more information. Sheila said that the city is pressuring the board for a quick solution because it is under a Nov. 4 deadline to get its budget information to the state.

Tom suggested the board check further with the state library for information and support. Rose Marie concurred, saying the board wouldn’t respond to pressure at the finance committee meeting scheduled for this evening.

Rose Marie emphasized the importance of the services the library provides to the community, and that cutting services now would be devastating. She said the board needed to make clear to the city that it would have to do much more research before committing to any more budget cuts.

Tom reiterated the need for careful examination of city budget documents, possibly with help from an outside source.

The board further discussed projected versus actual revenues, and what reporting requirements may not have been met by the city. They also went over documents provided by Tracy Cook that outline the duties and rights of library boards. (See Attachment 5.)

The board then adjourned, in order for members to attend the city finance committee meeting scheduled at 6 pm this evening.

Respectfully submitted,

Kate Potter, secretary

Note: Attachments may be viewed at the library.