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HomeMy WebLinkAboutAGENDA REPORT 2001 1205 CC REG ITEM 11D�f �r2 -5`2-00 A(­­;., : . Apero va d 'RG�mmariclai-lo.� S_wr►l e� � ny MOORPARK CITY COUNCIL A�Whor► of U-,o toot• 111ri C�J AGENDA REPORT TO: The Honorable City Council FROM: Mary K. Lindley, Director of Community Service §, N DATE: November 10, 2001 (CC Meeting of December 5, 2001) SUBJECT: Consider Moorpark Library Expenditures and the Adoption of a Resolution Amending the FY 2001/02 Budget for Certain Library Expenditures SUMMARY The City Council is being asked to consider and approve the recommendation of the City's Library Advisory Committee regarding the expenditure of funds for library materials and future capital improvements. The total proposed expenditure amount, over a two -year period, is $373,400. Additionally, the Council is being asked to adopt the attached resolution amending the FY 2001/02 budget to appropriate $49,300 from the City's Library Facilities Fee Fund (for a total of $59,300) to assist with t:ne first year's expenditures. BACKGROUND In the Ventura County Library Budge, the Moorpark Service Area has an unexpended balance of approximately $139,000 (FY 00 /01 - $54,400 and FY 01/02 - $76,500) to be spent on the Moorpark Library. The City can anticipate additional funds in FY 02/03, absent state budget actions that affect special districts, but we do not have an estimated figure at this time. This money is attributable to the property tax revenue generated from the Moorpark Library Service Area. The City is responsible for planning how best to spend the difference between the amount of money needed to fund basic day -to -day library operations and the amount of revenue generated in the Service area. This difference is known as the "fund balance ". Pursuant to the policy adopted by the Library Commission, cities in Library Service Areas with WOW 1'RI SLRV home tulders N1hndley \LI BRA RI' \library expcndinire plan ccagd.doc Library Expenditure Proposal Page 2 positive fund balances are responsible for deciding how best to spend those funds. The Moorpark Library Service Area fund balance, available to the City, can be spent on almost anything associated with the Library including materials, computers, furniture, building improvements and expansions, staff, and hours of operation. However, any expenditure that results in ongoing costs, such as maintenance or ongoing staff hours, becomes the financial responsibility of the Moorpark Library operating budget. A summary of the history and projected unexpended fund balance for the Moorpark Library Service Area is as follows: FY' (Revenge Expenditures 98/99 1$46,000 1$42,024 99/00 $41,100 $45,076* 00 /01 $54,400 F-01/02 $76, 500 r �fotal7 $218, 000 $87, 100 i * TY:e City contributed an additional $1,724 from its Library Developer 'ee bringing the total expenditures to $46,800. In addition to Ventura County's Moorpark Library Service Area fund, the City of Moorpark established a Library Facilities Fee Fund. This fee is collected on new residential, commercial, and industrial developments to mitigate new development impacts on the Moorpark Library. To date, the City has a balance in that fund of approximately $153,000 and it is expected that an additional $200,000 will be received by June 30, 2002, providing a total balance of $353,000. These funds may be used for all types of library materials, but not for building improvements or staff. DISCUSSION The City's Library Advisory Committee comprised of Mayor Hunter; Councilmember .Wozniak; t r e Moorpark Librarian, Bernadett McDowell; a Moorpark Friends of the Library representatives, Library Lxpenditure Proposal Pace 3 Jean Stufts and Gilbert Bahn; and an at -large member, Stephanie Lawrence, met on November 7 to discuss proposed expenditures. The Committee identified expenditures for a two -year period (FY 01/02 and FY 02/03) in an effort to accomplish the goal of updating the Library's collection, expand hours of operation, and offer technological resources. The Committee believes that the City needs to plan for future building improvements and /or expansions. As a result, the Committee recommends that the City set aside $50,000 from FY 00/01 Moorpark Library Services Area balance to establish a capital improvement fund. For each year thereafter, the City would set aside between 10 and 15 percent of the available Service area revenue in an effort to fund future Library capital improvements. From FY 01/02, it is recommended that the City set aside $10,000, bringing the total capital improvement fund to $60,000. Additionally, the Committee recommends that the City expand the Moorpark Library's hours of operation from 40 hours to 54 hours per week. The Moorpark Library's operating hours currently are: Monday and Wednesday - 12 p.m. to 8 p.m. Tuesday and Thursday - 10 a.m. to 8 p.m. Saturday - 1 p.m. to 5 p.m. The additional 14 hours would allow the Library to open on Fridays and to begin operations at 10 a.m. every weekday. Monday through Thursday - 10 a.m. to 8 p.m. Friday and Saturday - 10 a.m. to 5 p.m. Another significant benefit to funding additional operating hours is that these same funds would cover the cost of taking the part -time children's librarian to full -time. There is a large demand for children's programming and materials at the Library, and the additional staff time would facilitate meeting that demand, as well as allow the Library to remain open an additional 14 hours per week. It is estimated that in FY 01/02, expanded hours would cost approximately $35,000 and in FY 02/03 approximately $48,000. The Committee would also like to see the City expand and improve the Library computer center by purchasing 10 internet accessible computers and computer furniture; replace old, outdated Library, Expenditure Proposal Page 4 furniture; and upgrade the Library's materials collection. The total cost of proposed new materials is $105,200 in FY 01/02 and $125,200 in FY 02/03. In summary, the Committee's two year spending proposal is as follows: Proposed Expenditures FY 2001/02 FY 2002/03 Capital Set Aside ** $ 50,000 $ 10,000 Expanded Hours ** $ 35,000 $ 48,000 Books 72,000 $110,000 Computer Center 11,000 Furniture 18,800 $ 12,200 Administration ** 3,400 3,000 Sub Total $190,200 $183,200 ** ( -hese items must be funded oy the Library Property Tax Balance) � It is anticipated that expanded hours of operation will have a minimal impact on the cost of building utilities.) Over a two -year period, the Committee proposes spending $373,400. The exact amount to be funded by the Moorpark Library Service Area fund over this two year period is unknown since we do not have a revenue estimate for that funding source for FY 02/03. However, we do know that it will cover no less than approximately $130,900 (and most likely more). The remaining $242,500 for the two -year expenditure plan will be funded by the City's Library Facility Fee. Again, the total amount to be funded by the City's Facility Fee will most likely be less than $242,500. In FY 01/02, the total proposed expenditure is $190,200, of which it is recommended that $130,900 will be funded from the Library Service Area and $59,300 from the City's Library Facility Fee. The City initially budgeted $10,000 for library materials. To initiate the proposed expenditure of $59,300 from the City's library budget, the Council is being asked to adopt the attached resolution to appropriate the $49,300 from the City's Library Facility Fee to the City's Library expenditure budget. Library L•xpenditure Proposal Page 5 The proposed library expenditure for FY 02/03 is $183,200. Currently, the amount that will be available from the Moorpark Library Service Area is unknown. However, by the time the City Council completes its deliberations on the FY 02/03 City Budget, we should have a revenue estimate for that funding source. Once that number is known, the Council can include the remaining difference (it will not be greater than $183,200) as an appropriation in the new budget. As stated above, it is estimated that the City will have a balance of $353,000 by June 30, 2002, in its Library Facility Fee fund and potentially an additional $500,000 in FY 02/03. When the Library Advisory Committee met, it did not discuss the impacts possible state budget cuts could have on the library. While the recommended expenditures can be accommodated with existing funding sources, the ability of those sources to continue funding the proposed extended hours into FY 03/04 and the proposed level of library materials is unknown. In the future, the City Council may be asked to consider reducing library operational hours and material expenditure levels if the Moorpark Library Service Area fund balance is no longer sufficient to support expanded library operations. The City's action, with regards to the Moorpark Library Service Area funds, will be forwarded to the Ventura County Board of Supervisors as a provision of the Library Cooperative Agreement. It takes a two- thirds vote of the Board to oppose the City's proposed expenditures of the Moorpark Library Service Area funds. STAFF RECOMMENDATION (Roll Call Vote) Approve the proposed two -year library expenditures, as outlined in the Agenda Report, and adopt Resolution No. 2001 - , appropriating $49,300 from the City's Library Facility Fee for FY 01/02. Library Expenditure Proposal Page 6 RESOLUTION NO. 2001- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING THE FY 2001/02 BUDGET FOR LIBRARY MATERIAL PURCHASES BY APPROPRIATING $49,300 FROM THE LIBRARY FACILITY FUND (2154) TO THE LIBRARY EXPENDITURE BUDGET (7640). WHEREAS, on June 20, 2001, the City Council adopted the FY 2001/02 Budget; and WHEREAS, on December 5, 2001, staff presented the Council with a report which requests the appropriation of $49,300 from the Library Facility Fund for the purchase of library materials; and WHEREAS, Exhibit "A" hereof describes said budget amendment and its resultant impacts to the budget line items. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES RESOLVE AS FOLLOWS: SECTION 1. A budget amendment to appropriate $49,300 from the Library Facility Fund, as more particularly described in Exhibit "A" attached hereto is hereby approved. SECTION 2. The City Clerk shall certify to the adoption of the resolution and shall cause a certified resolution to be filed in the book of original Resolutions. PASSED AND ADOPTED this 5th day of December, 2001. Patrick Hunter, Mayor ATTEST: Deborah S. Traffenstedt, City Clerk Library Expenditure Proposal Page 7 Resolution No. 2001- EXHIBIT A Budget Revision A. Fund Allocation: Fund No. Fund Name Amount 2154 Library Facility Fund $49,300 $59,300 B. Budget Appropriation: BUDGET NUMBER BUDGETED IREVISION NEW BUDGET 2154.7640.0000.9205 $10,C00 $49,300 $59,300 1 Approved to Form: ,4 i1'