HomeMy WebLinkAboutAGENDA REPORT 2004 1006 CC REG ITEM 09EMOORPARK CITY COUNCIL
AGENDA REPORT
ITEM a. E.
CITY OF MOORPARK, CALIFORNIA
City Council Meeting
ACTION:llahA n,..i1 ofal�t
TO: The Honorable City Council
FROM: Mary K. Lindley, Director of Community Services
DATE: September 3, 2004 (Meeting of October 6, 2004)
SUBJECT: Consider Ventura County Library District Analysis
of Services and Fiscal Position Report and
Recommendations
SL714MARY
The Ventura County Library Services Commission (Commission)
authorized a study (Study) of the Ventura County Library's
structure and financial policies in an effort to identify
ways to address the current and future anticipated revenue
shortfall. The lack of sufficient revenue places a strain
on the Library and greatly reduces the service levels at
its fifteen libraries.
The draft Study (Attachment A), written by Management
Partners, Inc., does the following:
• outlines the current structure and status of the
Library,
• provides comparative service level and financial
information about other library systems in California,
• examines organizational structure scenarios, and
• identifies five potential financial policy options for
consideration by Library jurisdictions.
The Library Commission has spent considerable time
discussing the five funding options and to date the cities
of Fillmore, Ojai, Port Hueneme, and Simi Valley have
expressed support for Option Four in the Study. The Library
The Honorable City Council
October 6, 2004
Page 2
Commission is requesting to hear from the remaining member
jurisdictions.
BACKGROUND
The current Memorandum of Understanding (MOU) creating the
Library Commission and the current policies by which the
Library is governed, were approved by the member cities and
the County of Ventura in 1997. Under the MOU, the Library
Commission is comprised of an elected representative from
each of the seven cities within the Library system, and a
member of the County Board of Supervisors. Councilmember
Harper is the City of Moorpark's representative to the
Commission. The Commission is "empowered to oversee the
policy matters of the Library System and make
recommendations to the Board of Supervisors ". This includes
review and recommendation of the annual Library budget. The
Board of Supervisors may override a recommendation of the
Commission by a 4 /5ths vote. The MOU sets forth baseline
service levels for hours at each library.
The Library is divided into eight Service Areas. The
Service Areas are comprised of one of the seven
incorporated cities with a county library(ies) and the
surrounding areas of interest, or in the case of Moorpark,
the school district boundary. The remaining County
unincorporated area (areas not otherwise included in the
city Service Area) makes up the eighth Service Area.
In 1998, the Library Commission approved a set of Budget
Policies (Attachment B). Among the policies are provisions
that stipulate that the property tax generated within
service areas shall be allocated to the respective service
area (return -to- source) and that individual library
operational cost increases due to expansion, renovation, or
new construction of individual libraries, is the
responsibility of the service area jurisdiction. It is
generally viewed that the baseline levels set in the MOU
and the return -to- source policy have created inequities
when combined with the extreme cuts in key funding sources
facing the Library today.
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The Honorable City Council
October 6, 2004
Page 3
The Study makes recommendations to alter the return -to-
source policy along with restructuring the Service Areas'
boundaries. The goal is to provide a maximum level of
property tax revenue protections while providing the
Commission with some discretionary budget decision it
currently does not have to better balance services.
DISCUSSION
In summary, the Study focuses its findings in two areas:
governance, and funding and service levels. The options and
recommendations offered in the report have not been
finalized and the Commission has not taken a position on
which option(s) it favors, although a number of cities have
expressed support for Option Four. While the specifics of
the final recommendation(s) may change as the Commission
receives comments from the cities and the County, the City
of Moorpark is being asked to discuss and comment on the
latest version of the Study.
Governance: The consultant examined the various governance
structures that counties use throughout the state of
California. Some library systems operate as a department
under a county operation. Others operate within a Joint
Powers Authority between the participating incorporated
jurisdictions or as a special district. A more common
structure is the one adopted by the Ventura County Library,
which is the use of a Memorandum of Understanding (MOU) or
some other advisory structure to facilitate a role for the
participating jurisdictions. The governance options are
discussed in more detail in the Study.
While the consultant believes that over the long term, the
Library would have greater flexibility under a JPA, for the
short term, it is recommended that the Library continue to
operate under a MOU, revised to address funding and service
level issues. The conclusion of the consultant is that the
Library's energies are better spent on making revisions to
the MOU that will help balance service levels, rather than
undertaking significant reorganization measures at this
time.
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The Honorable City Council
October 6, 2004
Page 4
Funding and Service Levels: With the aforementioned
recommendation to retain the MOU structure, the consultant
looked at options to revise the MOU to address the funding
and service level provisions, which when combined with the
return -to- source policy, have led to system inequities. In
addition to return -to- source, the MOU provides for baseline
levels of service for each library in the system. It does
this by classifying libraries as "Neighborhood" (Meiner's
Oaks, Oak View, Piru, Saticoy, El Rio, Ventura Avenue),
"Small" (Fillmore, Ojai, Oak Park, Prueter), "Medium"
(Moorpark, Helen Wright), or "Large" (Camarillo, Simi
Valley, Foster) and allocating hours for each
classification. Weekly baseline hours of operation are as
follows: "Large" - 55 hours, "Medium"' - 40, "Small" - 24,
and "Neighborhood" - 16.
The baseline service hours conflict with the return -to-
source budget policy when the property tax generated in a
Service Area is not sufficient to support the service hours
as stipulated in the MOU. The consultant considers the
current structure as "facility- driven ". The MOU makes it
very difficult for the Library Commission to respond to the
reduced revenue by reducing services based on an objective
set of priorities, because the return -to- source and the
baseline hours -of- operation provisions tie their hands. The
Library Commission has very little discretion concerning
the allocation of services and revenue based on needs.
The consultant identifies five funding options and
recommends Option Four in the Study. Option Four revises
the return -to- source formula in use today. It also proposes
a change to the Service Area boundaries so that they are
based on "Areas of Interest" as used by LAFCO. There is
only one city within each area of interest, with the
exception of the Las Posas Area, which contains no
incorporated city. This would essentially eliminate a
County unincorporated library service area (currently
identified as Service Area 8) . Lastly, libraries located in
the same Area of Interest would be jointly managed to serve
that community.
Under Option Four, the return -to- source provision would be
revised to apply only to property tax monies collected
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The Honorable City Council
October 6, 2004
Page 5
within incorporated areas or within an Area of Interest
which does not include a city where a library already
exists. For jurisdictions with only one library, if
additional revenue is needed to maintain the baseline
service level beyond what can be supported the incorporated
property tax, the Commission would commit to allocating the
necessary difference from unallocated unincorporated area
property tax. All other unincorporated area property tax
revenue would become discretionary and would be programmed
by the Library Commission. Under the proposed revised
return -to- source policy, the Moorpark Library would require
additional funding from the Commission's discretionary
sources to maintain its current hours of operation (54 per
week) .
If Option Four is implemented, the Library Commission has
already been considering a waiver to the revised return -to-
source policy to address a commitment made by the City of
Camarillo and the Ventura County Library District when they
applied for State Library Bond funds to build a new
Camarillo Library. While the Library Commission and the
respective jurisdictions did not approve the action, the
use of the unincorporated property tax generated in the
areas around Camarillo for the new Camarillo Library was
identified in the Bond application, for which the City of
Camarillo was awarded funds. The assumption was made that
the Camarillo Library would have the use of these funds,
since that was the return -to- source policy that was in
place at the time. There is a feeling that this commitment
should be honored. The end result of the possible waiver
would be that the Camarillo Library would receive
approximately $433,000 in revenue that, if treated
consistent with the other Service Areas, would be allocated
to the Library Commission as discretionary funding under
Option Four. If on the other hand, the Camarillo Service
Area was not granted a waiver, but instead, as the only
library in the Service Area it was allocated additional
funds to maintain its current service level from the
proposed discretionary unincorporated property tax revenue
the Library Commission will manage, there would be
approximately $252,000 available at the Commission's
discretion. The $252,000 would go a long way in addressing
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The Honorable City Council
October 6, 2004
Page 6
the under funded libraries in the Fillmore and Port Hueneme
Service Areas.
The Study also states that the implementation of Option
Four may assist the Library Commission in making the case
for dissolving the agreement between the County and the
City of Thousand Oaks. This agreement provides for payment
to Thousand Oaks in the amount of $124,000 annually as
compensation for the use of the Thousand Oaks Library by
surrounding unincorporated residents. The $124,000 figure
is the amount of property tax revenue generated in the
unincorporated area around Thousand Oaks.
It' s important to note that even if Option Four were to be
approved by all parties and implemented, the Library system
would still be under funded by approximately $91,000
annually. To balance the budget, operational expenditures
(hours) would need to be cut (reduce hours), or the
Commission will have to use its shrinking reserves to over
the short fall.
Impacts on the Moorpark Branch Library: Currently, the
Moorpark Service Area consists of the City's jurisdictional
boundaries and the unincorporated areas within the MUSD
boundaries. Over the last several years, the Moorpark
Library Service Area generated more revenue than was needed
to operate the Moorpark Library. On average, the financial
status of the Service Area has been as follows:
Revenue Expenditure
Incorporated Prop Tax $443,000
Unincorp Prop Tax $ 57,000
Other Rev. $ 68,000
Annual Operating Costs $500,000
Annual Available Funds $68,000
The City has had approximately $68,000 per year, on
average, to allocate towards library enhancements. In FY
2000/01, the Council approved the expansion of weekly
operating hours from 40 to 54 hours per week (14 hours per
week increase). This was an additional ongoing expenditure
of approximately $20,000 per year. Additionally, each year
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The Honorable City Council
October 6, 2004
Page 7
the Council has been able to spend the remaining balance on
library materials.
If Option Four is approved by the Library Commission and
the member agencies, it is assumed that the Moorpark
Service Area boundaries would remain basically the same;
however, the only funding guaranteed to the Service Area
under the revised return -to- source policy would be the
property tax generated within the City's jurisdictional
boundaries, approximately $512,000, and other miscellaneous
funds from donations and fines (approximately $70,000). The
total revenue guaranteed to the Moorpark Library would be
approximately $582,000. The property tax from the
unincorporated property within the Service Area
(approximately $66,000) would not automatically be
allocated to Moorpark Service Area. The estimated cost to
operate the Moorpark Library at 54 hours a week (14 hours
above baseline) is $610,000. Under this scenario, the
Moorpark Library would be under funded by $28,000. However,
since the incorporated property tax is not sufficient to
maintain the Moorpark Library's current service level of 54
hours, it is suggested that the Library Commission would
commit to allocating the necessary funds (approximately
$28,000) from unincorporated property tax to keep the
library open 54 hours per week. The remaining unallocated
balance generated from the Moorpark Service Area,
approximately $38,000, would not be automatically available
for use at the Moorpark Library, as is now the policy, but
would be directed to the Library Commission for
expenditures made at its discretion within the Library
system.
Revenue Expenditure
Incorp Prop Tax $512,000
Misc. Revenue $ 70,000
Unincorp Prop Tax Allocation $ 28,000
Operational Cost (54 hour /week $610,000
Unincorp. Prop Tax to Commission $ 38,000
It is important to note that while the Library Director and
the Study's author have indicated that Option Four includes
54 hours of operation per week for the Moorpark, rather
than the baseline 40 hours as identified in the MOU, there
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The Honorable City Council
October 6, 2004
Page 8
has not been any discussion on the part of the Commission
to this change. Therefore, at this time there is no
guarantee that the service level for the Moorpark Library
will remain at 54 hours per week if Option Four is
approved.
Staff recommends that the City Council direct Councilmember
Harper to convey to the Library Commission that the City
concurs with the recommendation to maintain the current MOU
governance structure, but that it favors the status quo fpr
Funding and Service Levels not Option Four. Option Four
does not address the overall funding difficulties, it
leaves the decisions about service level cuts to the
individual Service Areas rather than the Library Commission
as a whole, and it creates new inequities (the Camarillo
Library waiver) that do not exist today.
While it is recognized that the status quo leaves several
libraries under funded (Fillmore, Ojai, Port Hueneme,and
Ventura) and faced with significant service level cuts,
Option Four, as proposed, does not resolve the overall
funding and service issues and creates new imbalances.
Offering the proposed waiver for the Camarillo Library
Service Area regarding the revised return -to- source policy,
places a greater burden on the other Service Areas. If
Camarillo were treated the same as is being proposed for
the other libraries, some of the property tax in the
unincorporated area around Camarillo could be used to
support the under funded libraries mention above
(approximately $26,000) . If the Camarillo Service Area is
allowed to retain the property tax generated from the
unincorporated area in its Service Area, all of the other
Service Areas should have that ability as well. The
Moorpark Library has greatly benefited from additional
expenditures the Council has been able to approve. While
staff appreciates that situation that Camarillo finds
itself in, mainly that it committed to building a new
library under the assumption of the return -to- source policy
that was in place at the time, the City of Moorpark also
expanded its operating hours under the same policy and
would like the opportunity to consider expanding its
library based on the original return -to- source policy, with
or without a state grant. The initial budget policy
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The Honorable City Council
October 6, 2004
Page 9
approved by the parties specifically stated that library
enhancements would be made at the risk of the respective
Library Service Area. The purpose of this provision was to
ensure that a Service Area was not able to increase its
operating allocation and place an increasing financial
burden on the remaining Service Areas. The City of Moorpark
has recommended library enhancement with the full
understanding that if funds decrease, the City will have to
make a decision to reduce service levels or find
alternative funding. Until the Commission resolves the
issues of equity on the return -to- source policy, staff
believes the status quo should remain in place.
STAFF RECOMMENDATIOIN
Direct Councilmember Harper to express the City's support
for the current MOU governance structure and its opposition
to the Funding and Service Levels Option Four at the next
Library Commission meeting.
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A A
ANALYSIS OF SERVICE AND FISCAL POSITION
Presented to Library Commission 613104
MANAGEMENT PARTNERS
P a
G 0 3o
Dear Ms. Kreissman-
Enclosed please find the draft report of the analysis of the Ventura County Library's Fiscal
and Service Positions. This report includes information on the Library's history, funding, and
service levels, as well as comparisons with other peer county library systems in the State of
California. A purposeful attempt was made to ensure that even the most uninitiated reader is
able to understand the current situation of the Library. This draft also includes two
recommendations with regard to form of governance and funding allocations.
In the longer run it would be desirable and justifiable for the Library to seek additional tax
funding. Current funding is clearly below the norm in California, and significantly farther
behind national funding averages. The Library may also wish to pursue some market-based
revenue raising opportunities, but the scale of existing facilities is not well suited to such uses
and advertising displays probably would prove problematic in a public library setting. Such
uses would also not raise very much revenue, relative to the needs of the system. This report
does recommend that each facility be evaluated for market-based revenue potential and that
the Library develop a system-wide development impact fee for technology and materials in
partnership with the cities and the County.
As you know, this report was presented to the Library Commission on June 3, 2004, for
consideration. Based upon that discussion, and follow-up meetings with City- representatives,
some modifications have been made to the document. A determination was made by the
Commission to distribute revised copies to the Commission members in order to facilitate,
discussion between Commissioners and their home jurisdictions. This modified version of the
report is provided for such purposes.
We are grateful for the opportunity to do this work for the Library and are happy to assist with
implementation. Our thanks to you, the Library Commission, and all members of the Library
for your support and assistance in this endeavor.
Sincerely,
Andrew S. Belknap
Vice President — Western Region
803 Midvale Lane www.managementpartners.com Telephone /Fax o 00 "Lai
San Jose, CA 95136 4089782991
EXECUTIVE SUMMARY
� C eja*-luTlfsA
D s
ANALYSIS AND RECOMMENDATIONS
1
3
4
5
HISTORY AND FINANCIAL STRUCTURE 5
SERVICE LEVELS 13
FINANCIAL AND SERVICE OPTIONS USED IN PEER COUNTIES 18
BENEFITS OF A REGIONAL SYSTEM 25
ISSUES FACING THE VENTURA COUNTY LIBRARY 28
OPTIONS - GOVERNANCE 31
OPTIONS - FUNDING AND SERVICE LEVELS 35
CONCLUSION 45
000133
�.
TABLE 1: VENTURA COUNTY LIBRARIES
5
TABLE 2: SERVICES IN VENTURA COUNTY BY LIBRARY
13
TABLE 3: LOCAL PROPERTY TAX REVENUES DO NOT SUPPORT
EXPENDITURES IN ALL SERVICE AREAS
14
TABLE 4: COMPARISON OF HOURS AND COST PER CAPITA VENTURA
COUNTY COMPARED WITH STATE AVERAGES
17
TABLE 5: SAMPLE OF RECENT LIBRARY BALLOT MEASURES
19
TABLE 6: FUNDING SOURCES OF CALIFORNIA COUNTY LIBRARIES
21
TABLE 7: How OTHER COUNTY SYSTEMS ALLOCATE SERVICE TO
BRANCHES
24
TABLE 8: COMPARISON OF COUNTY OVERHEAD AND INTERNAL SERVICE
CHARGES AS PERCENT OF TOTAL OPERATING BUDGET
28
TABLE 9: EFFECT OF PLF LOSSES ON VENTURA BRANCHES
29
TABLE 18: MOU SPECIFIED MINIMUM SERVICE LEVELS
30
TABLE 11: FORM OF GOVERNANCE OF CALIFORNIA COUNTY LIBRARY
SYSTEMS
32
TABLE 12: PROS AND CONS OF DIFFERENT FORMS OF GOVERNANCE
34
TABLE 13: APPLICATION OF ORANGE COUNTY FORMULA TO VENTURA
COUNTY PROPERTY TAX ALLOCATIONS
37
TABLE 14: PROPERTY TAX ALLOCATION CHANGES USING TAX/POPULATION
FORMULA
38
TABLE 15: EFFECT OF SHIFTING UNINCORPORATED TAX DOLLARS FROM
CITY CONTROL
41
TABLE 16: RETURN -TO- SOURCE WITH EXCLUSIONS
42
000134
FIGURE 1: VENTURA COUNTY LIBRARY BRANCHES ERROR! BOOKMARK
NOT DEFINED.
FIGURE 2: EFFECT OF ERAF SHIFT ON LIBRARIES 7
FIGURE 3: IENTURA LIBRARY SYSTEM AND COUNTY REVENUES OVER
TIME 8
FIGURE 4: VENTURA COUNTY SYSTEM CIRCULATION AND HOURS OF
SERVICE OVER TIME 9
FIGURE 5: COMPARISON OF SYSTEM REVENUES FROM FY00101
TO FY02103 12
FIGURE S: HOW VENTURA RANKS COMPARED WITH OTHER COUNTIES 15
Ventura County Library
Analysis of Service and Fiscal Position
EXECUTIVE SUMMARY
This document presents a report on the Ventura County Library's (VCL)
operations. It recommends policy changes to reposition the Library so it
can better face the financial and service issues confronting it.
Ventura County provides a comparatively low level of library services and
spends less per capita than comparable systems. Ventura is one of the
few larger county libraries in the state that has not raised taxes or
developed other revenue sources after the cuts made to the county library
property tax base in the mid- 1990s.
The Memorandum of Understanding (MOU) creating the Library
Commission ' in ' 1997 and the governance agreements underpinning this
arrangement have been successful in keeping the system operational. In
addition, greater participation from cities has enhanced accountability and
in some cases generated additional financial support for services.
Moreover, the delivery of library services on a regional basis has certain
economic benefits, particularly for the smaller communities.
However, some of the original assumptions that supported the MOU have
changed. Most significantly, the Library can no longer honor both the
promise of restricting all property tax and related funding to the service
area in which the property taxes are generated, while still providing the
baseline level of service at all branches as specified in the MOU.
Projections indicate that this problem will continue to worsen, making the
whole MOU progressively more unstable.
The return-to-source formula, coupled with the specification of service
hours by branch and the treatment of each service area as an
autonomous unit, results in a system of service delivery by formula. Such
formula-driven approaches are not uncomrnon in the delivery of
government services as they are a way to address the often subjective
issue of equity in an objective manner. They also prohibit large swings in
the allocation of resources and therefore reduce the uncertainties with
which policymakers and managers have to deal. This approach is well
suited to a very static environment where there is relatively little change in
the manner or method of service delivery and where resources are
constant. It is not well suited to a dynamic environment because it does
not allow policymakers and managers to rebalance or optimize the
system when a significant change in the environment occurs.
Management Partners, Inc. DRAFT REPORT
Ventura County Library
Analysis of Service and Fiscal Position
This is what faces the Ventura Library System. The extreme cuts in Public
Library Fund revenues, coupled with costs which are rising faster than
revenues and the potential for further Educational Revenue Augmentation
Funds (ERAF) cuts by the State of California will make conducting
business as usual under the MOU progressively more difficult. When
faced with such disruptions any business would need to change and
prioritize its activities. The Library has a very hard time doing this
because any fundamental changes in service delivery run afoul of the
return-to-source formula, the defined levels of service specified by
individual facility, the self-contained service area boundary concept, or all
three.
This report makes recommendations to alter the return-to-source formula
with the intention of providing the Library Commission with some tools to
use in confronting this changing environment. Specifically it is
recommended that the MOU be rewritten to specify that return to source
restrictions will apply only to taxes collected in incorporated areas or in
Areas of Interest without an existing city, but with an existing Library
branch and the potential for development of a city at some point in the
future'. The use of the Area of Interest is a more meaningful
representation of actual community service areas, than the existing
Service Areas in the MOU. Cities would still have return to source
protections, but these protections would extend only to the revenues a
city could reasonably expect to take upon withdrawal from the county
library system, such as property taxes within the incorporated area only
and some share of Public Library Fund (PLF) funding. Taxes collected in
the surrounding unincorporated areas would be retained by the county
library system.
Under this approach the Commisssion would have some discretion to
rebalance and optimize the system with the limited resources available,
Because the service provided by the Library are already "unbalanced"
across the communities served it is necessary to pair the above
recommendation with protection for cities that currently have only a single
library in their Area of Interest. Therefore, it is recommended that the
budget policies be amended to require that the Commission maintain
existing service levels for such areas.
Because of the zero-sum nature of the current system any change will
prove to be difficult. However, if no changes are made, the VCL will
become less of a regional service provider and current service level
differentials will be perpetuated.
I In addition the Los Posas Area of Interest revenues would be pledged to
Camarillo, because this Area of Interest was created after the Library JPA and
the Camarillo branch currently receives the revenues-
000111-311
Page 2 DRAFT REPORT Management Partners, Inc.
Ventura County Library
Analysis of Service and Fiscal Position
BACKGROUND
Facing a very difficult budget year while still struggling to recover from
devastating ERAF cuts in the early 1990s and faced with the inability to
continue honoring commitments to member agencies, the Ventura County
Library retained Management Partners to provide an analysis of the
system's service provision and fiscal outlook. This analysis will also
review how the Memorandum of Understanding (MOU) governance
arrangement has been working, options for improvement that might exist,
and recommendations concerning long-term financial sustainabiiity.
Specifically, as part of this project, Management Partners agreed to:
• Provide an independent analysis of financial and operational
outlook
• Assess system function with reference to peer libraries and their
operational and governance structures
Identify problem areas and frame policy issues
• Offer recommendations, and
• Assist with implementation if necessary.
During the engagement it has been the role of Management Partners to
examine the existing system from an independent perspective informed
by the views of both the member jurisdictions and the Library staff. The
recommendations in this report are offered with the objective of improving
the ability of the VCL to respond to changes in its environment and to
optimize service delivery on an ongoing basis. This implies that some
level of control and decision making be vested with the Library
Commission and Library staff. For the VCL to gain some control and
autonomy it will be necessary for member jurisdictions to share authority
and allow some collective decision making at the regional level. This may
be difficult given the genesis of the MOU and the Commission. However,
after operating well for the past five years, members must recognize that
deteriorating fiscal conditions threaten the viability of the overall Library
system.
0001-38
Management Partners, Inc. DRAFT REPORT Page 3
Ventura County Library
Analysis of Service and Fiscal Position
In performing this analysis, Management Partners reviewed all foundation
governance and financing documents as well as Library system financial
records and systems operations data in order to get -an idea of issues
facing the system and to analyze the long-term financial sustainability. As
a means of comparison, Management Partners benchmarked the
system's performance and financial data against other county library
systems in California. Management Partners met individually with the
Library Director and each Library Commission member in order to gain
more information and opinions regarding issues in the system. Our
approach culminated with the identification and measurement of all
potential future impacts and the development of organizational,
operational and fiscal strategy recommendations for implementation. In
meetings with both the City Managers of the member cities and with the
Library Commission, Management Partners refined the information of use
to policy makers and tested likelihood of implementation of various
approaches.
Page 4 DRAFT REPORT Management Partners, Inc.
Ventura County Library
Analysis of Service and Fiscal Position
ANALYSIS AND RECOMMENDATIONS
This section of the report will provide the context of the Ventura County
Library. This includes an analysis of its operations and funding,
comparisons with other county and city library systems, identification of
potential future impacts to the system, and options for ensuring the
success and sustainability over the next five years.
History and Financial Structure
The Ventura County Library is governed by the County Board of
Supervisors subject to a Memorandum of Understanding with cities within
the jurisdiction of the Library and subject to advisory recommendations
from an eight member Library Commission, comprised of representatives
from the member service areas. The Library system currently provides
service to an estimated service area population of 443,000 through 15
branch libraries as shown in Table 1 below. This table shows the city or
area where the branch is located, whether that is an incorporated city or
unincorporated county area, and the number of branches.
TABLE 1: VENTURA COUNTY LIBRARIES
City/Area
Incorp./Unincorp.
Number of Libraries
One (a much larger replacement
Camarillo
Incorp.
library is under construction)
Fillmore
Incorp.
One
Moorpark
Incorp.
One
Ojai
Incorp.
One
Port Hueneme (Preuter)
Incorp.
One
Simi Valley
Incorp.
One
Ventura
Incorp.
Three
El Rio
Unincorp.
One
Meiner's Oaks
Unincorp.
One
Oak Park
Unincorp.
One
Oak View
Unincorp.
One
Piru
Unincorp.
One
Saticoy
Unincorp.
One
Management Partners, Inc. DRAFT REPORT Page 5
Ventura County Library
Analysis of Service and Fiscal Position
As Figure 1 below shows, the geographic distribution of these branches is
not uniform throughout Ventura County; instead, the system has a
majority of its branches (nine) on the west side of the county where
historic growth occurred. The Ojai Valley has three branches (Ojai,
Meiner's Oaks and Oak View), the City of Ventura has three branches as
well as the nearby Saticoy branch, and El Rio and Port Hueneme are
located on either side of the City of Oxnard.
FIGURE 1: VENTURA COUNTY LIBRARIES
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A?
Moorpark
. . . ....... . ` d7 .. . . ........
R. .....
chatsww1h Re r
L
usand Oaks
Hid(JEn
ura
_7
e Vitt
Pon Huenem
Pacific Ocean
apanga
ltop�4*. OM M-A C�� Md��hs �pfiqn, Ail 6gft, Z
The Ventura County Library is a "county free library," one of
approximately 28 in the state. While not legally a special district, it is
established, maintained and governed by the Ventura County Board of
Supervisors like a county department, but its funding is segregated from
other county government operations. Under the law, county free libraries
may include cities, and this is the usual model. State statutes defining
county free libraries (Education Code §19400) do not include a provision
for shared governance but do provide for city and library districts to come
into and out of the system with their respective tax allocations, For cities,
this source of local control and accountability was severely weakened
with the passage of Proposition 13 in 1978.
In terms of tax funding, the Ventura County Library is treated as a special
district for purposes of the post-Proposition 13 allocations of the 1%
property tax share. In the period between 1980 and 1992 the system
worked well and was adequately funded. Indeed the County Board of
Supervisor's control of the Special District Augmentation Fund (SDAF)
positively impacted the Library. The 1992-93 shift of Educational Revenue
Augmentation Funds (ERAF) from local governments to the state ended
the SDAF, and had a devastating impact on the Ventura County Library.
Libraries were in a relatively unique position as special districts, heavily
rii .�
0
Page 6 DRAFT REPORT Management Partners, Inc.
Ventura County Library
Analysis of Service and Fiscal Position
reliant on the property tax and without significant fee authority. The only
other type of special district with a similar structure, the fire protection
district, was exempted from the ERAF shift.
Figure 2 below shows the disproportionate impact ERAF has had on the
Library relative to cities and the county.
FIGURE 2: EFFECT OF ERAF SHIFT ON LIBRARIES
1&0%
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
Ventura County Property Tax City No Prop" Tax City Ventura Library
(Oxnard) (Thousand Oaks)
1 El Mitigated ERAF (172 and COPS) n Total ERAF
The library lost as a percentage of its budget about twice as much as the
county or a relatively hard-hit city. In addition, it did not benefit from state
"mitigations" such as Prop 172 or COPS funding.
The Library has never recovered from this loss of funding. As shown in
Figure 3 below, Library revenues today are lower in real terms than they
were in 1991. The county, which was impacted to a greater extent than
cities by ERAF, has seen some increase in revenues, albeit very slight.
Management Partners, Inc. DRAFT REPORT Page 7
Ventura County Library
Analysis of Service and Fiscal Position
FIGURE 3: VENTURA LIBRARY SYSTEM AND COUNTY REVENUES OVER TIME
as
E .2
14
12
10
8
0
4
2
0
sgL e' 2� 0 SP 5' �� q S§1 ®' & ®'
ti W ry V IV IV 11\1 <Ib�
IC3
<< 4 << - <I- I,< e< F e< F
700
600
X
500 a
C
400 =
LL .0
300
200
100 W
0
0
U
Ventura County: Library, -System Revenues County County of Ventura - General Fund
Impact from the loss of revenues in 1992 was not immediate because the
Library had amassed some reserve funding, but this was quickly used
and substantial service cuts and layoffs began to occur in 1993, 1994 and
1995.
000143
Page 8 DRAFT REPORT Management Partners, Inc.
Ventura County Library
Analysis of Service and Fiscal Position
As a result of cuts in hours and staffing, circulation and use of the libraries
declined. These service impacts are detailed in Figure 4 below.
FIGURE 4: VENTURA COUNTY SYSTEM CIRCULATION AND HOURS OF SERVICE OVER TIME
As these service cuts took hold, the public became aware of the problems
and cities were drawn into a discussion of how to deal with a situation
which was suddenly viewed as a crisis, but which had its roots in events
that took place two or three years before. Library management had not
responded in a proactive manner to the fiscal crisis and when the
reserves ran out, cuts in service hours were unilaterally implemented. The
public did not see libraries as part of a county system but as a municipal
service which had always worked fine and now, was comprehensively
broken, so they demanded action from city officials. Cities found
themselves with an immediate and substantial problem,
During 1996 and 1997 with the active involvement of the cities, service
delivery was substantially restructured and operations were streamlined.
The larger cities also looked at the option of pulling out of the system and
running their own libraries. In Ventura a consultant recommended
withdrawal, Simi Valley also commissioned an analysis that looked at the
costs to implement an independent library operation. In both cases the
cities found that they would probably have to increase funding to deliver
the same services.
Management Partners, Inc. DRAFT REPORT Page 9
Circulation and Hours Are Down
800
...... - - ---- 71� . .......
2,000,000
700--
1,800,000
1,600,000
600--
1,400,000
500
1,200,000
12
400-
1,000,000
0
E
300
800,000
R
6( DO 000
Z3
200--
400,000
100-
]7
200,000
0
0
q`b qc CP 2^ 9g oP lzR qz 91)\ 0Z) 41 zz 1Z111
CY
R) 'pr C5 Ke
System Hours / Week -mo-- Circulation
As these service cuts took hold, the public became aware of the problems
and cities were drawn into a discussion of how to deal with a situation
which was suddenly viewed as a crisis, but which had its roots in events
that took place two or three years before. Library management had not
responded in a proactive manner to the fiscal crisis and when the
reserves ran out, cuts in service hours were unilaterally implemented. The
public did not see libraries as part of a county system but as a municipal
service which had always worked fine and now, was comprehensively
broken, so they demanded action from city officials. Cities found
themselves with an immediate and substantial problem,
During 1996 and 1997 with the active involvement of the cities, service
delivery was substantially restructured and operations were streamlined.
The larger cities also looked at the option of pulling out of the system and
running their own libraries. In Ventura a consultant recommended
withdrawal, Simi Valley also commissioned an analysis that looked at the
costs to implement an independent library operation. In both cases the
cities found that they would probably have to increase funding to deliver
the same services.
Management Partners, Inc. DRAFT REPORT Page 9
Ventura County Library
Analysis of Service and Fiscal Position
Ultimately a shared governance solution was worked out and approved
by all parties in November 1997. Since 1998 the system has been
operating under a Memorandum of Understanding or "MOU" (see
Attachment A) between the county and member cities. This agreement
stipulates how the Library system will provide service to the incorporated
cities and what the funding for such service will be from the cities. In
essence, the MOU provides that all tax dollars generated from within the
incorporated cities and from the unincorporated areas immediately
surrounding them will be directly paid back in the form of library services
("return-to-source"). At the same time, the MOU states that each branch
facility will receive a certain base level of service. (The area of service
specified in the MOU are shown on a map in Attachment A.)
The MOU states that if a city withdraws from the Library system, it will
receive the library facilities, materials and those library property taxes and
other library revenue directly attributable to the incorporated portion of the
jurisdiction only. A recent opinion from Ventura County counsel stated
that at least some of these provisions in the MOU are inconsistent with
state law
However, the precedent of the Library system allowing 100% return of all
incorporated property tax when the City of Thousand Oaks withdrew from
the system in the early 1980's would support full return of property tax.
Arrangements to "make cities whole" when they withdraw from a county
library have varied around the state but there are a number of precedents
which would support return of tax dollars to the jurisdiction.
While the Ventura County Library is a free county public library with
property tax funding, only the MOU portion of its form of governance
provides for local control. The MOU is essentially an overlay on top of the
county free library form. Ownership of the branch facilities varies but
improvements and additions to service are at the discretion of, and are
the financial responsibility of, each jurisdiction.
This system, along with the restructuring of operations, allowed more
funding so that the larger libraries did not see significant reductions in
hours of service. It also provided something of a guarantee so member
agencies are assured that their property tax share will not be reduced if
additional funds are provided; in this way, members have an incentive to
invest new money into the system. Ojai subsequently passes a parcel tax
and other cities contributed general fund and various grant funding.
A major issue in the MOU was how to provide for a "return-to-source"
promise and still be able to provide a minimum or baseline level of service
in the areas that did not generate enough property tax to support the
facilities then in operation. (The review effort culminating in the MOU did
not address the distribution of existing facilities.) The solution was to use
the only significant funding the Library receives that could not be tied
back to a particular city either as property tax or by population as needed
to provide baseline services. This source of funding was the Public
Library Fund (PLF), a state subvention.
000.1,45
Page 10 DRAFT REPORT Management Partners, Inc.
Ventura County Library
Analysis of Service and Fiscal Position
Through the period 1998 through 2003, the PLF was used to support
library operations in Fillmore, Ojai, Port Hueneme and Ventura. These
cities did not generate enough property tax and other return-to-source
monies to sustain the baseline or, in the case of Ojai, to sustain the
baseline and the enhanced services funded with the property tax. PLF
funding reached a peak of $742,590 in FY00/01. Unfortunately as a result
of the state budget crisis starting in 2003, this funding has been reduced
by 75% and further cuts are possible.
By way of comparison, Figure 5 below shows the change in revenue
types to the Library system from the peak of PLF funding in FY00/01 to
the most recent concluded fiscal year FY02/03, Drops in both the VLF
and PLF funding are apparent while other sources of revenues (including
Oak Park library construction, Ventura CDBG, Ojai donations, and other
items) are a growing portion of total system revenues.
Management Partners, Inc. bRAFT REPORT Page I1
Ventura County Library
Analysis of Service and Fiscal Position
FIGURE 5: COMPARISON OF SYSTEM REVENUES FROM FY00101 To FY021103
2001 Primary System Revenue Types
as Percent of Total Revenues
VLF PLF
7% 8% Fines/Fees
3%
Others
25%
Property Tax
57%
2003 Primary System Revenue Types
as Percent of Total Revenues
VLF PLF
8% 4% Fines/Fees
3%
AOthers
'19%
Property Tax
66%
E w,t" .M'
Page 12 DRAFT REPORT Management Partners, Inc.
Ventura County Library
Analysis of Service and Fiscal Position
Service Levels
A key component to determine library performance is to review its service
levels in terms of circulation, hours open for service per week and cost
per capita.
Currently the system's branches are open 541 hours per week and total
annual circulation was 1.4 million items in 2001-02. As previously
discussed, system-wide levels of both hours of service and circulation are
significantly down from that offered in past years.
Services in Ventura County by branch are summarized in Table 2 below.
Independent library operations in Oxnard and Thousand Oaks are shown
for comparison.
TABLE 2: SERVICES IN VENTURA COUNTY By BRANCH
Branch
Branch
Size
Circulation
Collection
Hours
Service
Pop.
Circulation
Per Capita
Expenditures
Per Capita
Camadllo..
16j500
338,303:;
111,000
55
76,595.
4A2
.;$18.52
El Rio
18,673
20,000
24
6,267
2.98
$18.93
Filimpre;
3,030
31,750
32j000
24
16,539,
1.92
Meiners Oaks
1,609
7,605
15,000
24
11,058
0.69
Moorpark-:
7,703
'89;.986,
40,000
54
35,907
2.51
$15:9
90
.Oak Park
9,100
3,085
40
12,695
0.24
$20.39
Oak Vi
I PW
2,400
12j999.-
20000
1
24
4,249.
3.06
.$36.09
Ojai
5,106
129,991
48,000
55
16,248
8.00
$32.53
Piru
11960
20,400
20,000
24.
2,147
9.50
$37,69
Port Hueneme
15,064
75,451
58,000
40
31,686
238
$16.61
Safi
.2,400
.13 553
I
25,000
24-
- M56
� I 1
11.72
$94. -71
.Simi Valley
36,000
293,416
135,000
55
120,503
2.43
$12,68
Thousand Oaks Unincorp.
7,426,
0,00
$16.71
Ventura - Foster
31,000
170,914
121,000
9-4
35,000
4-68-
$29.75
Ventura -Wight
12,088
197,945
85;0
40
62.000
3.19
$12.63
.Ventura - Avenue
3,000
23,986
23,000
24
7,100
3.38
$18.87
Ventura.-.Total
46,08
.392,845
2219,000
:1118:,;
108i919
3.61:_
Oxnard
682,902
334,399
57
182,000,
3.75
$16.05
Thousand Oaks
1;512;250
_ 329;011
63
121,0001
12.501
$50.861
As can be seen, service levels vary widely with the largest branches open
55 hours per week and several of the smaller branches open 24 hours
per week. Similarly, expenditures per capita vary from $11.11 in Meiner's
Oaks to $94.71 in Saticoy.
A source of tension is the fact that service levels are not distributed fairly
or equally across the system. The City of Ventura has three branches in
operation. Combined, these three branches provide that city with 118
hours of service per week (which can be compared to 55 hours provided
to Simi Valley, which is of similar population size). Similarly, three
S
Management Partners, Inc, DRAFT REPORT Page 13
Ventura County Library
Analysis of Service and Fiscal Position
branches are located in Ojai Valley resulting in a total of 103 hours of
service in that service area.
A related issue is the fact that not all cities with libraries generate enough
library property tax to sustain baseline operations, as shown in Table 3
below. This problem is most acute in the western area of the county with
the most libraries to operate.
TABLE 3: LOCAL PROPERTY TAX REVENUES Do NOT SUPPORT
EXPENDITURES IN ALL SERVICE AREAS
FY03-04
Base
Base
Difference
Adjusted Budget
Revenues
Appropriations
(+ or
Camarillo
$1,548,924
$1,312,578
$236,346
Fillmore
$106,615
$250,565
($143,950)
Moorpark
$581,3165
$532,645
$48,710
Ojai (has parcel tax)
$236,020
$445,253
($209,233)
Port Hueneme
$327,528
$397,798
($70,270)
Simi Valley
$1,581,168
$1,550,208
$30,960
Ventura
$1,648,746
$2,072,811
($424,065)
El Rio
$81,581
$100,198
($18,617)
Meiner's Oaks
$123,165
$106,901
$16,264
Oak Park
$256,583
$224,707
$31,876
Oak View
$85,492
$121,216
($35,724)
Piru
$30,787
$71,910
($41,123)
Saticoy
$23,363
$93,149
($69,786)
When compared with
state averages,
Ventura County
provides a
relatively low level of service. Even those areas that appear to be well
served do not have services
or facilities that are unusual. Specifically, it is
not unusual for a city of over 100,000 to have two or three libraries. It is
more unusual to see a city
of this size with
only one branch.
A comparison of Ventura County Library metrics against other county
library systems in the State of California yields the following rankings as
shown in Figure 6 below. The shorter bars indicate a lower ranking and
longer bars indicate a higher ranking.
00 0 X49
Page 14 DRAFT REPORT Management Partners, Inc.
Ventura County Library
Analysis of Service and Fiscal Position
FIGURE 6: HOW VENTURA RANKS COMPARED WITH OTHER COUNTIES
How Ventura County Library ranks Relative to the 19 Largest
County Libraries in California
Rank
Statistic
(1 = lowest, 19
highest)
2000 Median Family income
15
# of Branch Libraries
12
Total Paid Staff FTEs
6
FTE Per Branch
3
Operating Expenditures per Capita
5
Library Operating Expenditures Per Capita as
a % of Weekly Median Family Income
5
% of Operating Expenditures on Salaries and
Wages
5
% of Operating Expenditures on Collection
13
Collection Expenditures per Capita
10
Holdings per Capita
12
Circulation per Capita
6
Average Hours Open per Week per Outlet
6
Average Population Served Per Branch
4
Population of The Legal Service Area
g
As can be seen, Ventura ranks poorly in most of the categories.
Compared against other 19 large counties, Ventura ranks 17th in FTEs
per branch and 14th in average hours open to the public. Although
Ventura has a high number of branch libraries, the average population
served per branch is very low. There are only three other systems in the
19 examined that had a lower average population served by branch. Put
simply, Ventura County has a lot of branches but they are not open very
much.
The system ranks relatively high in collection expenditures and holdings.
From this, one could conclude that Management has placed a priority on
maintaining an updated collection.
The most common way to measure the level of library services provided
by different communities is expenditures per capita. Figure 7 below
provides comparisons using the 19 large county systems and some local
independent libraries.
Management Partners, Inc. DRAFT REPORT Page 15
Ventura County Library
Analysis of Service and Fiscal Position
FIGURE 7- OPERATING EXPENDITURES PER CAPITA
2002 Operating Expenditures per Capita
County Libraries of > 100,000 Population ® Including
the cities of Oxnard and Thousand Oaks
Marin County Free Library
Santa Clara County Library
Thousand Oaks Public Library
San Mateo County Library
Alameda County Library
Solana County Library
AVERAGE
Monterey County Free Libraries
San Luis Obispo County Library
Sonoma County Library
Los Angeles County Library
MEDIAN
Contra Costa County Library
Orange County Library
San Diego County Library
Stanislaus County Free Library
Fresno County Public Library
Ventura County Library
Oxnard Public Library
Kern County Library
Madera County Library
Riverside County Library Service
San Bernardino County Library
No other county public library surveyed in a county where the median
family income is above $50,000 had a lower per capita expenditure for
library services than Ventura. The Ventura system is one of the few
county systems in the state that does not receive significant
supplementary funding from another revenue source or from the county
itself.
0001151
Page 16 DRAFT REPORT Management Partners, Inc.
Ventura County Library
Analysis of Service and Fiscal Position
One caveat that should be kept in mind is that for a given level of service
(for example, hours open to the public) a larger jurisdiction will generally
have lower per capita costs than a smaller system. For this reason a large"
city like Oxnard can provide more services, such as longer hours, at a
lower per capita cost than a smaller system. In fact even though it spends
slightly less per capita than the Ventura system, Oxnard has a higher
number of hours open to the public than the average for the Ventura
County system. It is also important to note that the Oxnard system has
an average population per facility of approximately 85,000. The same
number for the Ventura system is about 30,000. Another factor in
considering the Oxnard expenditure comparison is that review of the FY
2003 budget document did not show an overhead allocation to the library
budget.
The City of Thousand Oaks, which is not a member of the Ventura
County Library but which receives funding from Ventura County Library to
provide library service to the unincorporated areas surrounding it, has a
library that ranks very high in this per capita comparison and high when
compared to other libraries for similar sized cities. The average
expenditure for city libraries in California serving populations between
80,000 and 120,000 is a little over $20 per capita.
As can be seen from Table 4 below, as population increases library costs
per capita fall and hours open to the public increase. As with many
municipal services, larger cities can benefit from some economies of
scale.
TABLE 4: COMPARISON OF HOURS AND COST PER CAPITA VENTURA COUNTY
COMPARED WITH STATE AVERAGES
The same dynamic can be seen in the Ventura County system. it is
interesting to note that relative to state averages, the county system
delivers more hours at less cost for the smaller cities. This same
relationship holds true as the libraries get larger, but the magnitude of the
differential falls. The same data, converted to a graphic format, results in
the following Figures 8 and 9 below.
0001-1.52
Management Partners, Inc. DRAFT REPORT Page 17
State Averages
VCL Average
Per
Capita
Per Capita
Population Served
Hours/VVeek
Cost
Hours/Week
Costs
< 7.,000.
38.0
$
122.00
25.0
$ 47.42
7,000.17210,.000
47.9
$
50.70
25.6
$ 19.59
20,000 - 80,000
53,6
$
30.79
46.8
19.36
�80,000 - 12.0,000
58.0
$
20.14
55.0
$ 15.71
The same dynamic can be seen in the Ventura County system. it is
interesting to note that relative to state averages, the county system
delivers more hours at less cost for the smaller cities. This same
relationship holds true as the libraries get larger, but the magnitude of the
differential falls. The same data, converted to a graphic format, results in
the following Figures 8 and 9 below.
0001-1.52
Management Partners, Inc. DRAFT REPORT Page 17
Ventura County Library
Analysis of Service and Fiscal Position
FIGURE 8: COSTS PER CAPITA FALL AS POPULATION INCREASES
$140
$120
2
$100
$80
CL $60
0 5 $40
$20
$0
<7,000 7,000- 20,000- 80,000-
20,000 80,000 120,000
a Average Cost Per Capita - State
Average
M Average Cost Pbr Capita -
Ventura
Population Catagory
FIGURE 9: HOURS PER WEEK INCREASE WITH POPULATION SERVED
rT#1
60
50
40
30
20
0
3: 10
0
<7,000 7,000- 20,000- 80,000 -
20,000 80,000 120,000
r
Ea — Average -- Avera .Hours r � Week - State
Average by Population Served
M Average Hours Per Week -
Ventura
L-- — -- — —!
Population Catagory
Financial and Service Options Used in Peer CountieW
While property taxes are the primary funding source for all library system I s
in the state, a review of additional revenues generated by other county
library systems illustrates that there are three other primary additional
sources of revenue: parcel tax, sales tax, and expansion of the tax base.
Each option is reviewed below along with a discussion of how other
counties are setting service levels at their branches. This section will also
discuss how another county (Orange) has implemented a formula based
system, and like Ventura, has not increased tax support.
Parcel Tax
A library parcel tax could be placed on the ballot of an upcoming election
by either the Library System as a whole or by cities who are members of
the System. If passed, an additional set amount of tax would be added to
each parcel. In order to pass, such a measure would require 2/3 (67%)
approval of those voting. At least three other California library systems
age -io DRAFT REPORT Management Partners, Inc.
Ventura County Library
Analysis of Service and Fiscal Position
have parcel taxes in place to provide additional revenues: Marin County,
Santa Clara County, and Contra Costa County (which has three cities
with their own parcel taxes).
Passage of a parcel tax could be difficult in the current climate. Many
ballot measures are already in place for upcoming elections in Ventura
County and voters have not been terribly supportive of such measures.
As Table 5 below shows, the majority of recent measures regarding
library funding has failed to garner the 213 approval needed (though many
were approved by a simple majority of voters). One notable exception is
the Blanchard Library (Santa Paula) parcel tax which was recently passed
by a narrow 68% margin.
TABLE 5: SAMPLE OF RECENT LIBRARY BALLOT MEASURES
PATE.,
JURISDIC
TITLE':. E':I,
NO
PASS?
3/212004
Santa 'Paula (Blanchard)
B4
Increase parcel tax from $ 1 25 t . o$40
1. 68 1 .1 . % .
, 31.9.%
y . E , S
3/2/2004:
.::,".Ga rderia"
Pa rc&I Tax —ficils,& ServicesJor-Coun ty
526.4
47 6
.3
:,NO
Branch::."
3/212004
Huntington Park
N
Parcel Tax — Facils & Services for :County
61.44 1 , 1
38.5 1 6
N0
Branch
La Puente
Parobl. x—F' H
— Facils 8, Services or County.
2
5 .77,
4
NO
Branch
3/212004
Montebello,
Q
Parcel Tax — Facils & Services for County
50.85
49. - 15
NO:
Branch
31212004
Pico Rivera',
i
ParcelTax �-17a cls&8ervices for
31.84
68 . .16
NO
ly
County-Branch
312/2064
San Fernando
T
Parcel- Tax — Facils & Services for County
51.86
48.14
NO
Branch
3/212604
.,Santa Clara
B
Special tax $42 per SFR per year
61.2
38.8
No,
3/2/2004
South Gate
U
48-64
. 51.36
NO ...
312/2004
y
P
1/8 tent Sales Tax. for Library System
71,88
28.12
YES,
Nov-01
Azusa
L
Library G.O. Bonds New Facility I ity
7 . 6.46
23.54
YE . S .
1'1/7/2000
Santa Paula (Blanchard)
803
19.7
YES,
31712000
Cupertino
A
Advisory — Build $22M New Library? %
71.5
21.5
YES
3171200O
Saratoga
N
C : mmunity Library Bond of $15M
77.6
22.4
YES
3/211999
San Diego County
L
50.23
49.77
NO
Nov-98
LA County
DD ..Library
Improv ment Bond
71,71
29
YES
Nov-98
Santa Monica
L
Library Improvement Bond
81.44
18.56
YES
1114/1997
. ;San' Dimas
Z
Special Parcel arcel Tax
73.28
26.71.
YES
1 1 /511 996
San Diego (San Diego)
A
'/4-cent Sales Tax for Branch Construction
NO
111811096:
an ie
San Diego County
:A
1/4- cent Tax forlReglonal Library A t fi ority
69.08
40.92
No
Management Partners, Inc. DRAFT REPORT Page 19
Ventura County Library
Analysis of Service and Fiscal Position
Sales Tax
The Library system could attempt to pass a sales tax measure at an
upcoming election. To do so, the Ventura County Board of Supervisors
would need to adopt an ordinance which includes a detailed expenditure
plan for the new revenues. By State Law (Revenue and Taxation Code
§7286.59) the sales tax for libraries can be imposed at either 1/8 or 1/4
percent for a period not to exceed 16 years. Revenues can only be used
for funding library construction, acquisition, programs and operations and
cannot be used to supplant existing funding sources. The ordinance
would then be submitted to the voters and would require 2/3 (67%)
approval of those voting in order to pass.
At least four other county systems — Fresno, Solano, Nevada, and
Stanislaus — rely on sales tax revenues for their libraries. San Luis Obispo
hopes to get a sales tax measure on the ballot soon, perhaps in
November 2004. As is the case for parcel taxes, passage of sales tax is
difficult in the current economic climate but sales tax can provide
significant and very valuable additional revenues to the Library System.
Expand Tax Base
One novel approach toward creating additional revenues that deserves
some consideration is the expansion of the Library system's tax base.
This approach was successfully taken by the San Diego County Library
System a few years ago. The county had a reserve of property tax
revenues and agreed to shift property tax growth allocations for a three-
year period (FY99/00 to FY01/02) from the county to the library. In doing
so, the library's permanent revenue base was significantly increased. The
county obtained special legislation for this (AB494) and limited the shift to
a maximum of $3 million per year for a total of $9 million. While a direct
link cannot be shown, total San Diego County Library System operating
income doubled from $13 million in 1999 to $24.5 million in 2002,
presumably in large part due to this temporary shift.
It must be understood that there are significant differences in the San
Diego and Ventura County circumstances. Unlike San Diego, Ventura
County does not have property tax reserves ready to be tapped and is
instead facing financial difficulties. Nonetheless, an expansion to the
Library system's base could yield significant additional revenues.
Formula- Driven Allocation
Yet another option to consider is a formula-driven allocation of resources
within the Library system such as is done in the Orange County system.
Such an allocation is a means to objectively apportion services while
using existing resources.
In Orange County a weighted formula of revenues for each branch was
created based on three criteria:
• Percent of system circulation for that branch (30%)
• Population served at that branch as percent of total (30%)
• Percent tax contribution of that branch (40%).
000155
Page 20 DRAFT REPORT Management Partners, Inc.
Ventura County Library
Analysis of Service and Fiscal Position
In Orange County this formula resulted in three basic service levels: 5
days/week, 6 days/week and 7 days/week. This formula has never been
strictly adhered to, however, and the library system has made
adjustments based on circumstances. The formula is currently under
review based on the state's budget situation, and changes are
anticipated.
Other counties, notably Santa Clara have also used a formula to set basic
service levels. However, in Santa Clara additional revenues from a parcel
tax were available.
One problem with the implementation of a formula such as Orange
County's on an existing system such as Ventura's is that it tends to
perpetuate service level inequities (to the extent they exist) by using
circulation as a criterion. This report will consider various formula
approaches later in this report.
An important point to consider is that most other counties in California
have supplemented library funding in some fashion since the ERAF cuts
in the early 1990s. Table 6 shows the various approaches used in other
areas of the State.
TABLE 6: FUNDING SOURCES OF CALIFORNIA COUNTY LIBRARIES
System Primary Funding Sources
'Speciall Funding Sources
Alameda County Library Dedicated prop no county Four of five cities provide additional
general fund. Board of Supervisors has funding for supplemental service
hours;
policy to give library a share of have been doing so for 19-20 years or
Business License and UUT revenues more. In 1994 one city passed a library tax=
as Weil. and this funds its supplemental services.
Contra Costa County I% property tax allocation (like special
Library
district). Tried to pass 1180 sales tax in
6/98 and got 64%, tried again in 11/00
and got 66.1% (both failed).
Three cities have passed their own parcel
taxes; they collect the funds and then give
to the County for additional hours of
service for their branches. The system also
received a very large ($2 million over five
years) donation from a company but it is
dedicated to funding one region of the
library system, so the regional board for
that region met to allocate the funds to tha
region's branches.
Management Partners, Inc, DRAFT REPORT Page 21
Ventura County Library
Analysis of Service and Fiscal Position
System
Fresno County
Library
Kern County Library
Primary Funding Sources
Designated property tax share plus
sales tax plus small amount of County
General Fund money.
County general fund.
Marin County Free Library 2 Gets dedicated district property tax
share. County will supplement with
General Fund on case-by-case basis
(has funded deferred maintenance
projects),
Monterey County Free
Libraries
PURI =1
P1
Riverside County Library
Service
San Bernardino County
Library
an Diego County Libra 1. r I y
Funding comes primarily `from --a share
of the property tax collected within its
service area. This share is about one
cent per dollar collected (as of 1996).
Small amounts of additional funding
come from the County General Fund,
the State of California, from donations
and from library fees and fines.
Dedicated property tax.
Ueaicated property tax for Special
District. There is no County General
Fund share.
Dedicated property tax for 'Spe�lal-
District. Very small County General
Fund shares in past three years to
provide additional service hours at
certain locations.
As special district, gets 1 % property
tax share plus another $2.4M from
County's General Fund (subsidy).
Other funding from grants, fines, etc.
Passed 0.125% sales tax Measure — Bin
11/98 which now equals 50% of the
budget; measure expires 3/06 and work is
already begun on its successor to go to
vote 11/04. Feels Measure B was
successful as grassroots effort; Friends
groups really worked hard, called people
and sold I',.
- - - - ------- —
other than grants, fines and fees.
Special assessment approved by voters in
November 1993 and April 1994, $36/year
parcel tax with no sunset clause but also
no CPI adjustment.
Two special arrangements: 1) Friends at
one branch provide funding through MOU
for two additional hours of service per
week and 2) there is one schoolilibrary
MOU so that County Library operates a
library facilities built/paid by the School
system. No other special assessments,
etc.
Supplemental funding provided "-b-y' some
"
cities, Friends groups and the Library
Foundation to enhance materials, etc. but
County does not like them supporting
hours of service and feels this is the
county's responsibility.
No supplemental funding by cities or
otherwise (other than Public Library Fund).
Board of Supervisors got special —11 -111--
legislation allowing them to double
property tax share using growth only (no
new taxes) over three year period.
Doubled library's tax revenues.
00 0 X57
Page 22 DRAFT REPORT Management Partners, Inc.
Ventura County Library
Analysis of Service and Fiscal Position
System
Primary Funding Sources
',Special Funding Sources
Stockton -San i;iiquin
Funding based on proportion of service= None known. Some cities have contracts
County Public Library
at each branch provided to City or
to supplement service hours at their
County residents; City of Stockton
2
branches and provide funding for that.
pays proportion equal to use by city
residents and County pays proportion
equal to use by County residents.
Exact funding sources unclear but
presumably General Funds.
San Luis Obispo City-
' -- are
Dedicated erty tax sh
None yet. Hoping to get 1/4% salesHtax
County Library
increment on the ballot November 2004.
San Mateo County Library
Dedicated property tax (80% Of
State revenues account for approximately
revenues). Gets large boost from i SFO
7.5% of the Library's revenues. The
Airport
County contributes approximately 5%, and
library fines and fees account for
approximately 2% of library revenues.
Santa Clara County Library
Dedicated property tax share
=
Special assessment approved by voters
Solano County Library Dedicated property tax share
z
Passed Measure B in 1998, 1iW-
good for 16 years, now equals 1/3 total
revenues.
Stanislaus County Tree
75% of budget tied to special
Library
dedicated 1/8¢ sales and use tax (10
years old -- up for renewal now). 8-
10% of budget from County General
Fund and remainder from misc. fines,
_q'.grantsy
ividijayernem i-ariners, inc. DRAFT REPORT Page 23
Ventura County Library
Analysis of Service and Fiscal Position
Key to the provision of library service is the allocation of service hours
and staffing to the various branches in incorporated and unincorporated
areas. Table 7 below shows the variety of methods used to determine
service levels in other library systems in California.
I� 1: �Jmjilqi` 1�
HOW BRANCH SERVICE LEVELS ARE DETERMINED
Alameda "C", o--u-ntyLib^raV
Completely at County Librarian's discrefion. Allocates
based roughly on population size; attempts to provide
roughly equal service level across the system.
ContraxCosta County Library County provides base level of service of 35 hours per
week to all branches (including unincorporated /smaller
branches). If cities want more, they must provide funding
for it.
Fresno County Public Library
Has five tiers of service (Central Library, Regional, Branch,
Neighborhood and Stations) based on population served
and each gets set level of days open and hours. Currently
no cities are supplementing service.
Kern --County
Informally set by Library Administration based roughly on
demand/population served,
Marro 6 County Free Library
Service hours have been the same for many years. When
cities want more service, the library system stretches its
budget to provide more service hours or make physical
improvements to the facilities.
Monterey vCounty --Free - Libraries
Hours of service based on size of branch and population
served; flat rates based on overall system funding.
grange County Public Library
Has formalized an allocation formula as follows: 30%
based on percent of system circulation, 30% population of
branch as percent of total, and 40% tax contribution to
system. Results in roughly 2 levels of service, 5 days a
week and 7 days a week. Board has set minimum
standard at 5 days of service and 2 professional librarians;
those branches not meeting minimum receive
supplemental funding to meet it. Others are able to go
beyond this.
Riverside County Library Service
Negotiated by county based on local need, requests, and
revenues raised in.each area. Some basic service level
requirements (i.e., must have two staff at each facility)
requires minor redistribution of funding to smallest areas.
San Bernardino County Library County sets staffing, etc. for each site based on level of
activity but service hours generally uniform, not widely
varying.
Page 24 DRAFT REPORT Management Partners, Inc.
Ventura County Library
Analysis of Service and Fiscal Position
HOW BRANCH SERVICE LEVELS ARE DETERMINED
Sanblego County Library
In April 2000 worked with Friends groups to create "Plan g
Service" i.e. an allocation methodology. Created five tiers
of service based upon population served, circulation and
facility size. Each tier has set service levels.
Stockton-San Joaquin County Public Library Created b'—plateaus
of service: 21 hours at small branches,
35 hours at two medium branches, and 55 at the central.
This is based roughly on population and
use. Some cities
elect to supplement service hours with their own funding,
San Luis Obispo City - County Library Historically set base levels which vary from facility to
facility. Based loosely on population and size. New
strategic plan tries to even things out and create 4-tier
system but no funding yet to carry through on plan.
San Maters Co`unt'y: _Ubrary__
The Library Fund supports 40 open hours at libraries in
cities with 10,000 or fewer residents, and 60 hours for
larger cities. Cities may choose to enhance local service
by providing supplementary funding for extended hours of
service or other activities at their libraries. Two cities
currently pay for such extended service.
Santa Clara County Library
Some cities choose to enhance local service by providing
supplementary funding to support extended operation on
il Sunday and other days. Three cities currently pay for
extended service. Two cities established a joint powers
authority, with voter approval, to provide additional library
service taxing ability within their area.
Solano County
service for large and small branches;
not formalized in writing but was advertised to public with
Measure B that this is the level of service to be provided
(i.e., service hours).
gGnislaus County Free Library
Apportion based upon population need (not return-to-
source). Have tiers of service based upon size of branch; 1
all similar-sized branches have same service levels.
Benefits of a Regional System
When discussing future directions for the Ventura County system, one
needs to know the benefits of having a regional system. After all, if the
service can be delivered just as effectively at the city level, the existing
system could be dissolved and no further effort would need to be
expended on operation of the Library Commission or studies such as this.
The facts, however, indicate that there are significant and quantifiable
benefits associated with the regional delivery of library services. This is
especially true for the smaller cities and unincorporated communities.
To reach this conclusion we examined typical library service delivery
methods in California and the associated costs and current trends in
Management Partners, Inc, DRAFT REPORT Page
Ventura County Library
Analysis of Service and Fiscal Position
library service delivery. We also looked at the services provided in cities
operating independent libraries as well as in those served by a regional
provider. In addition county overhead and support costs were examined.
As was discussed previously, per capita costs for library services drop
significantly as population increases. Unlike services such as police and
fire, library facilities can serve a growing population at a low marginal cost
because personnel and facilities do not have to expand in lockstep with
population to provide satisfactory service. Because of this factor,
relatively few cities with populations under 120,000 operate a stand alone
library.
Using data from the State Controller's Office and the Public Library
Association, Management Partners was able to identify all California cities
operating independent libraries. This data is shown in Figure 10 below for
the population ranges noted.
FIGURE 10: PERCENT OF CALIFORNIA CITIES WITH OWN UsRARY
50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Under 7K 7-20K 20-80K 80-120K I
City Population
One would expect that the cost of service per capita will fall as system
size increases and that the prohibitive per unit cost of service in the
smallest libraries would result in groups of smaller libraries joining
together to achieve economies of scale. This what the findings indicated.
This information suggests that all participants in the Ventura County
system are receiving library services at less cost than would be the case
if they had independent operations. Overlaying the information obtained
for the above analysis on the actual costs reported by the Ventura system
confirms this hypothesis.
Page 26 DRAFT REPORT Management Partners, Inc.
Ventura County Library
Analysis of Service and Fiscal Position
Figure 11 below shows a regression analysis of the costs reported from
all independerit libraries'in California and thosa' observed in the Ventura
system. The data indicates that all services memberd are receiving rvices at'
less cost than would be predicted for an independent operation based on
the experience of other cities. In other words the fact that very few small
cities actually operate an independent library suggests that most such
cities find the idea of operating a library to be cost prohibitive.
FIGURE 11: ECONOMIES OF SCALE
MOD
co $3MOD •
0
0
$10.00
20= 25= 3D= 3!K=
Service Area Population
Solid Line = State Dashed Line = VCL
These. conclusions are backed by some independent analytical work
commissioned by member jurisdictions. Both the cities of Simi Valley and
Ventura examined the costs which would be required to run an
independent operation in the 'mid-1990s and decided not to proceed in
this manner. It should be noted, however, that economics was not the
only factor behind this decision.
While there are economies of scale, some concern has been expressed
about the various "non-branch" costs allocated to the Library by the
County of Ventura. These costs are composed of several elements
ranging from support and administration costs of the Library, internal
service fund (ISF) charge- backs and county -overhead allocations for
such functions as accounting and legal support.
A comparison of Ventura County charges to the Library system against
those in other library systems is shown in Table 8 below. Each line item is
shown as a percent of total operating budget for the library system.
000162
Management Pa #Hers; lnc. DRAFT REPORT
Page 27
Ventura County Library
Analysis of Service and Fiscal Position
TABLE 8: COMPARISON OF COUNTY OVERHEAD AND INTERNAL SERVICE CHARGES As PERCENT OF
TOTAL OPERATING BUDGET
As can be seen, charges to the Ventura County Library from the county
were 10-89% of total operating budget. This compares with a range of
10.73% to 14.18% in other library systems. Based on this information,
Ventura County overhead and internal service charges do not appear to
be outside the normal ranges. While it is likely that further efficiencies
could be garnered through alternative service methods (i.e., using private
contractors for some services), the cost savings resulting from such
changes would not be sufficient enough to effect the system's overall
financial sustainability.
Issues Facing the Ventura County Library
There are many positive points about the existing governance
arrangement. First and not insignificantly, it has allowed a system that
was on the verge of collapse to continue functioning. It has encouraged
and supported significant restructuring which has streamlined operations.
Cities have brought improved accountability to the system and have
made significant investments in the system. Ventura County has been
able to maintain a functional if not outstanding library system without
additional tax revenues or contributions from the county general fund, in
spite of devastating revenue losses, a situation that has forced many
other counties struggling with the same problems to adopt new taxes or
000iG3
a- _U UKAFIREPORT Management -Partners, Inc.
Ventura County
Santa Cruz Co.
San Mateo Co
Stockton-San Joaquin
Sonoma county
Fj02 :22_Bud et
FY02-03 Bud et
FY02-03 Budget
FY02.03 Budget
Actual
Indirect Cost Recovery /Other
0.44%
2.07%
_EY011-02
CA010E0 Office
0.55%
Personnel
0.70%
0.82%°
Risk Management
0.00%,
Purchasing
0.15%
0.03%
insurance
0:86%
0:64%
1.64%
051%
Legal
0.10%
-------------
0.06%
Ulephon'e;��siarvice
A� 50%
0.6411/6
0�38%!
7 1:10%
0.44%
Telephone - Equipt
1.48%
0.65%
-0.61%
Mail
0.79%
'
0.07%
0.08%
0.58%
039%
Repro/Copying/Graphics
0.23%
0.45%
8 0
0 0
0.19%
0.10%
IT Equipt ... �� .
;. .
� I .,
1.09%
. . I -
4.11 %
2340%
Prof Services - IT
1.19%
0.30%
-
0,49%
0.38%
Prof Services - Fiscal
2:21 %
0.07%
0.68%
0.27%
Prof Services - Other
0.38%
2.10%
1.05%
2.07%
1.24%
Vehicle Rental
0.36%
0.07%
0;26%
Vehicle O&M
0.27%
-
.0.25%
Equipt Rental' :
0,05%
2.96%
1.550%
0,09/1,
Equipt O&M
0.04%
---
Janitorial
0.69%
Building MaintenancelFacilities
0.35%
1.95%
7.37%
_7
0.96%
A`A5
109%
Total Charges,
$974,192
17
$1;835,470
$1,51.4,546
$1
Total Operating Budget
$8,943,870
$10,468,978
$13,532,641
$10,680,111
,9:3.3;14;1
$10,561,542
TOTAL ASt%.OP. BUDGET
1089%
1.oe93%
3.56%,
T4. 18 %
10.73%
As can be seen, charges to the Ventura County Library from the county
were 10-89% of total operating budget. This compares with a range of
10.73% to 14.18% in other library systems. Based on this information,
Ventura County overhead and internal service charges do not appear to
be outside the normal ranges. While it is likely that further efficiencies
could be garnered through alternative service methods (i.e., using private
contractors for some services), the cost savings resulting from such
changes would not be sufficient enough to effect the system's overall
financial sustainability.
Issues Facing the Ventura County Library
There are many positive points about the existing governance
arrangement. First and not insignificantly, it has allowed a system that
was on the verge of collapse to continue functioning. It has encouraged
and supported significant restructuring which has streamlined operations.
Cities have brought improved accountability to the system and have
made significant investments in the system. Ventura County has been
able to maintain a functional if not outstanding library system without
additional tax revenues or contributions from the county general fund, in
spite of devastating revenue losses, a situation that has forced many
other counties struggling with the same problems to adopt new taxes or
000iG3
a- _U UKAFIREPORT Management -Partners, Inc.
Ventura County Library
Analysis of Service and Fiscal Position
direct scarce county general fund monies to library functions. It is
important to note that Ventura maintains library service with virtually the
leanest staffing ratio in the state and still manages to put a little more than
average towards new books and materials.
Unfortunately it is crucial to recognize that the environment is changing,
becoming even more difficult from a financial standpoint, and the current
MOU is becoming unstable. The loss of most of the PLF means the
Commission no longer has the "discretionary" funding available to support
baseline services in communities without enough property tax revenues
to support such services. Because of a structural deficit, the branch in
Fillmore will see a significant reduction in hours below the baseline, and
significant reductions are anticipated in Ventura, Ojai and at several of the
county branches. In the case of Fillmore and Ventura, the cuts will
probably cause the services provided to drop below those stipulated in
the MOU.
Table 9 below is based on current budget estimates, including a potential
new ERAF cut as contained in the draft state budget. It is important to
note that the PLF support in 2004 was less than 50% of what it had been
in 2003. It is also to be noted that currently the Library allocates PLF
using the same formula as for other system revenues, primarily based
upon branch circulation and population of area served. For this reason,
the bulk of PLF revenue is directed to Ventura and Ojai.
TABLE 9: EFFECT OF PLF LOSSES ON VENTURA BRANCHES
-
FY 2004
PLF -
Branch
Adopted
2004
Camarillo
$1,327,759
Fillmore
$243,212
$56,305
Moorpark
$528,893
Ojai
$535,532
$108,923
Port Hueneme
$533,652
$45,963
Simi Valley
$1,559,227
Ventura
$2,134,530
$192,549
Meiner's Oaks
$70,147
Oak Park
$199,723
Oak View
$126,327
Piru
$69,657
Saticoy
$97,932
Soliz/El Rio
$105,682
Total
$7,532,273
W1 ERAF
$1,508,676
$163•• 2
$623:,005
$467,325
$536,378
$1,720,825
$1,985,392
$73,089
$218,559
$122,490
$64,977
$101,135
$84,210
0, 0 531
PILIF -
2005
Change
14%
-33%
18%
-13%
1%
101®
-7%
4%
9%
-3%
-7%
3%
-20%
2%
MOM
Management Partners, Inc. DRAFT REPORT Page 29
Ventura County Library
Analysis of Service and Fiscal Position
The facilities-driven nature of the MOU makes it very difficult for the
Commission to reduce services based on an objective set of priorities.
Even in the face of serious financial problems the Commission is unable
to consider existing disparities in service delivery. Basically, the MOU
locks in the status quo as of 1997.
Table 10 below shows the libraries located in each service area and the
total hours specified in the MOU for these libraries.
TABLE 10: MOU SPECIFIED MINIMUM SERVICE LEVELS
�17
Area
Location
Libraries
I
Camarillo
1
2
Fillmore
I
3
Moorpark
I
4
Ojai
1
5
Port Hueneme
I
6
Simi Valley
1
7
Ventura
3
8
County - Various
6
A comparison of the number of branches and hours against population
served for each service area shows the inequities of the current system.
The obvious disparities make it hard to ask communities that already view
themselves as "underserved" to make concessions and lose control of the
protections they now have in the MOU
Not only does the facilities- driven definition of service levels make any
changes to the status quo difficult, but the way service areas are defined
and funded removes any incentive to rationalize service delivery in areas
that include multiple libraries. Therefore decisions about what is best for
service areas trump consideration of what is best for the entire Library
system. For example, even though it might be argued that the three
facilities in the Ojai Valley area should be merged into two or even one
facility so that the savings could be used to improve services in an
underserved area elsewhere, the existing rules and incentives prevent
any such discussion at the regional level. This is because the Ojai Valley
has two service areas, area #4 for the City of Ojai and the other a portion
of area #8 for the county unincorporated areas. These service areas
operate autonomously. The same is true with regard to Ventura and the
Saticoy branches.
Page 30 DRAFT REPORT Management Partners, Inc,
Population
Hours Specified
in Service
in MOU
Area
55
78,603
24
15,013
40
30,904
24
16, 325
24
32,357
55
114,229
114
104,100
104
37,127
A comparison of the number of branches and hours against population
served for each service area shows the inequities of the current system.
The obvious disparities make it hard to ask communities that already view
themselves as "underserved" to make concessions and lose control of the
protections they now have in the MOU
Not only does the facilities- driven definition of service levels make any
changes to the status quo difficult, but the way service areas are defined
and funded removes any incentive to rationalize service delivery in areas
that include multiple libraries. Therefore decisions about what is best for
service areas trump consideration of what is best for the entire Library
system. For example, even though it might be argued that the three
facilities in the Ojai Valley area should be merged into two or even one
facility so that the savings could be used to improve services in an
underserved area elsewhere, the existing rules and incentives prevent
any such discussion at the regional level. This is because the Ojai Valley
has two service areas, area #4 for the City of Ojai and the other a portion
of area #8 for the county unincorporated areas. These service areas
operate autonomously. The same is true with regard to Ventura and the
Saticoy branches.
Page 30 DRAFT REPORT Management Partners, Inc,
Ventura County Library
Analysis of Service and Fiscal Position
Absent significant additional tax revenues, the Library system will become
more and more unstable. There are two main reasons. The first is that the
facilities and services levels determinations built into the 1997 MOU are
becoming progressively more outmoded. The second is that revenue
reductions coupled with costs that are escalating faster than base
revenue growth makes it inevitable that somebody will have to consider
the best way to reduce services. This implies some priority setting and
rationalization process, but the existing governance structure cannot
deliver this at the regional level. By default, priority setting will occur only
at the service area level, with the disparities that exist,
As Table 11 below shows, county library systems in the State of
California are governed in a variety of ways. At one time these systems
were all basically a department within a county. Over time other
governance structures have been developed. In a few cases a separate
Joint Powers Authority has been created with overall governance
responsibility. A more common approach, as seen in Ventura County, is
the development of an MOU or some other advisory structure to overlay
the district and give some role in governance to cities in the system. This
is a response to the fact that cities have had to take a lead role in dealing
with revenue shortfalls
000ic, 6
Management Partners, Inc, DRAFT REPORT Page 31
Ventura County Library
Analysis of Service and Fiscal Position
TABLE 11: FORM OF GOVERNANCE OF CALIFORNIA COUNTY LIBRARY SYSTEMS
Interviews with Library system staff, Library Commissioners, and member
city representatives allowed the consultants to develop an understanding
of the existing MOU. The following perceptions are representative.
• The MOU has improved system accountability due to city
oversight.
• Current system has provided cities with a positive incentive to
support their local branch. Capital investments by cities are a
positive sign.
• Return-to-source has created a sense that some cities are "haves"
and others are "have nots."
• The system is more a "loose confederation of convenience, than a
regional system."
• A regional perspective on service delivery has been weakened.
• The Commission is trying to take a more regional view, but it is
hard to share when nobody has enough.
• The lack of virtually any unrestricted funding hamstrings
management.
Page 32 DRAFT REPORT Management Partners, Inc.
U) es
r"a
E
T:
0
Library
CL
0 W
M 4)
4) ELM)
Z
>
=20 0
=
iis
U_ U) 0
0 0
<
Alameda County Library
X
Contra Costa County Library
X
Fresno County Public Library
X
Kern County Library
X
Marin County Free Library
X
Monterey County Free
Libraries
X
Orange County Public Library
X
Riverside County Library
Service
X
San Bernardino County Library
X
San Diego County Library
X
Stockton-San Joaquin County
Library
X
San Luis Obispo City - County
Library
X
San Mateo County Library
X
Santa Clara County Library
Solano County Library
X
Sonoma County Library
X
I.Stanislaus County Free Library
X
Ventura County Library
X
Interviews with Library system staff, Library Commissioners, and member
city representatives allowed the consultants to develop an understanding
of the existing MOU. The following perceptions are representative.
• The MOU has improved system accountability due to city
oversight.
• Current system has provided cities with a positive incentive to
support their local branch. Capital investments by cities are a
positive sign.
• Return-to-source has created a sense that some cities are "haves"
and others are "have nots."
• The system is more a "loose confederation of convenience, than a
regional system."
• A regional perspective on service delivery has been weakened.
• The Commission is trying to take a more regional view, but it is
hard to share when nobody has enough.
• The lack of virtually any unrestricted funding hamstrings
management.
Page 32 DRAFT REPORT Management Partners, Inc.
Ventura County Library
Analysis of Service and Fiscal Position
There is benefit in that we get the same economies of scale as a
straight county operation but with more oversight and potential
service providers.
Cities have an incentive to participate to ensure efficient
operations and to invest since they can direct how resources will
be applied to meet needs in their community.
County operations are more efficient and sustainable as a result of
city participation.
In general, the strength of the current form of governance is believed to
be the increased accountability (over that in a straight county library
system) resulting from city oversight and participation. A weakness is
seen to be the lack of a truly regional perspective and a focus instead on
each member's own branch. In general, however, most persons
interviewed expressed optimism that there is value in maintaining some
form of regional system.
One of the basic questions needing to be addressed at the present time is
a determination of the best form of governance for the system. The
following options are considered:
Dissolution
The system could be dissolved and each city could provide its own library
services and the county could provide service to the unincorporated
areas. Dissolution can occur in a managed (planned for) or unmanaged
(uncoordinated) manner through the withdrawal of its members.
Dissolution would mean that the economies of scale discussed above
would be lost. Evidence suggests that a regional system is more cost
effective for small to medium-large cities, of which several are members
in the VCL.
Transition to a Special District
The Library system could apply for, and become, an independent special
district apart from Ventura County government, Doing so, however, would
require a funding source and an agreement from other governmental
agencies in the County. to share property tax revenues with the new
district.
Joint Powers Agreement UPA)
The current system could be converted to a Joint Powers Agreement
(JPA). A regional system coupled with some local oversight via a JPA or
MOU is the way most California county libraries are evolving, with the
benefit being greater flexibility in terms of funding allocations and
contracting for services. For example, a JPA can contract for accounting
or information technology services from any private vendor or government
agency, as opposed to simply using the county government as VCL
currently does. A sample Joint Powers Agreement which was approved
on June 5, 2004 for the San Mateo County Library can be found here as
Attachment B.
Management Partners, Inc, DRAFT REPORT Page 33
Ventura County Library
Analysis of Service and Fiscal Position
Continue with Memorandum of UnderstangUng, (MOYJ
The current MOU system could be continued. However, given that the
current return-to-source and minimum service standard requirements are
in conflict, modifications to the MOU would be required
to ensure long-
term sustainability of the system.
Revert to County Svstem
The current MOU could be terminated and the
and the system could
revert back to a department of Ventura County
Government. Such a
reversion would mean the loss of some city control
and oversight.
Contract for Services
Though not common, some systems have been
completely contracted
out to private vendors. The Riverside County system is entirely contracted
to a private service provider (LSSI).
There are pros and cons associated with each form
of
outlined in Table 12 below:
governance, as
TABLE 12:PROS AND CONS OF DIFFERENT FORMS OF GOVERNANCE
Form of Governance Pros
Cons
Managed Dissolution each 'member to
Depends on
have discretion.
Maximizes local control.
agreement among all
or virtually all
• Potential for return of
members.
property tax in exchange •
Loses ability to provide
for taking over library
minimum library
services. Anticipate
services to all
maintenance of effort
communities.
provision. a
Precedent in LA and
Cities may not be able
to insist on transfer of
Riverside Counties.
unincorporated
property taxes from
surrounding areas.
Smaller/poorer cities
k.
may still be better off
remaining in what is
left of the county
system.
®
Loss of economies of
scale.
Special District • True autonomy .
True �eo �n
autonomy omy
0
Complex process
• No need to mesh county
need to mesh county
requiring property tax
and JPA systems
transfer agreement
• Can have elected a
Loss of economies of
trustees or since special
scale from association
legislation is
with county
contemplated design •
Need to negotiate
governance structure
language with
• Librarian/manager could
be hired, fired and
numerous agencies
a
directed by Governing
Return-to-source may
be threatened or
...... f Board -
weakened with cities
Page 34 DRAFT REPORT Management Partners, Inc,
Ventura County Library
Analysis of Service and Fiscal Position
For,m of Governance
Pros
Cons
maintaining control
over only incorporated
share.
Joint Powers Authority
a Depending on the
Not fully independent.
(JPA)
willingness of the parties,
County Free Public
can become much more
Library (a.k.a. the
independent of county
Board of Supervisors)
■ Potential for some cost
still has authority. Still
saving from outsourcing
need to mesh systems
some support functions
to some degree.
from county.
Creates another
■ Can continue to utilize
government agency
county support functions
■ Director still has dual
when it makes sense
role reporting to county
■ No need for legislation or
(albeit subject to clear
LAFCO proceedings. No
parameters) and JPA.
property tax negotiations
required. Tax goes to
county but it flows by
agreement to JPA.
■ A contract with the
county, or another
employer, to provide
staffing could reduce
potential for conflicts.
Improve Existing MOU
a Simplest improvement
Need to resolve
option
minimum service and
■ No need for legislation or
system management
LAFCO proceedings. No
issues
property tax negotiations
■ Continued need to I
required.
manage some
ambiguities.
■ Director still has dual
reporting relationship
to manage.
Contract for Library
■ Easiest for county and
A Loss of local control
Services
cities to manage (hands-
■
a Difficult to rebuild
oft)
system later if private
a Place responsibility an
vendor doesn't work
private vendor to perform
out
amid ambiguities of
system.
While in the long run moving toward a JPA arrangement might provide
more flexibility, Management Partners believes that revising the existing
MOU would be most beneficial in the short term to deal with the
immediate crisis of the next several years. The Library system's energy
would be better spent now in making MOU revisions that will help to
balance service levels rather than in undertaking a wholesale
reorganization of the entire system.
Management Partners, Inc, DRAFTREPORT Page 35
Ventura County Library
Analysis of Service and Fiscal Position
Recommendation 1: Maintain the current form of
governance but revise the MOU to provide for better
balancing of service levels. The existing form of
governance is not irreparably broken and, in fact, is an
improvement over past years. The primary issues of
concern in the short term are those of finding a way to
better balance service levels across the entire system.
Revisions to the MOU should be made in order to do so
within the structure of the existing system.
This section presents five options for reformulating the current MOU. Four
of the options provide a mechanism which would allow the Library
Commission to make recommendations to address the issues, while one
would institute a new formula weighted for tax distribution which adds
population as a factor in the allocation of property taxes.
In our view, however, construction of a new formula is not as desirable as
empowering the Library Commission and library management staff. This
is an important point. While some government by formula is useful,
particularly in relatively static environments, the degree to which the
Ventura Library system is now functioning on "auto-pilot" is proving to be
debilitating. If left unchecked it will gradually lead to greater disparities
while providing no incentive to address the existing imbalances.
P
ption One: status Quo
Of course, one option is to leave the situation as it currently exists. On
balance it is probably a more efficient system than existed prior to 1997.
As service levels diverge it will become harder to manage and the Library
System / Library Commission will become increasingly irrelevant.
Option Two: Change PLF Allocations
Another option is to change the formula for allocation of PLF in the
service areas. Under this option the Commission Budget Policies and
possibly the MOU would be revised to give the Commission discretion
with respect to how the PLF monies are allocated. The rationale for this
change is that the PLF was intended to help those areas that could not
provide baseline services. Because of the way the MOU defines baseline
services, the areas that arguably have the most current services, Ojai and
Ventura (which have three and four nearby branches, respectively),
receive most of the PLF, further exacerbating the existing disparities.
Although the PLF allocation is now at only approximately $200,000 per
year, it has a proven track record and many supporters. The state is likely
to increase funding once it is in a position to do so, Having discretion over
as little as $200,000 would enable the Library Commission to make some
adjustments and potentially spare the Fillmore Library from further cuts
and potential closure.
c2k
j� OQ DRAFT REPORT Management Partners, Inc.
Ventura County Library
Analysis of Service and Fiscal Position
As part of this strategy the Library Commission might also encourage the
County to try to withdraw from the current funding agreement with the City
of Thousand Oaks where approximately $124,000 is transferred from the
Ventura County Library to the City for library services to surrounding
unincorporated areas. This approach would probably have a greater
chance of success in connection with Option Four below.
P26on Three: Implement Formula Aflocadon Mechanism
Yet another option would be to implement the type of formula used in
Orange County (or some modification) to take factors other than source
into consideration in allocating tax monies. As previously discussed,
Orange County uses a formula based system to allocate all funding,
including property taxes, This county, like Ventura, has also not had a tax
increase for library services.
Table 13 below shows how application of the standard Orange County
formula would impact existing property tax allocations in the Ventura
County Library. This would increase funding available in some of the low
tax revenue areas such as Fillmore and Port Hueneme, and thereby
ease, but not eliminate the existing problems with maintenance of the
baseline.
TABLE 13: APPLICATION OF ORANGE COUNTY FORMULA TO VENTURA COUNTY
PROPERTY TAX ALLOCATIONS
One factor that is more problematic is that application of this formula,
which includes circulation as a key factor, tends to reward those
communities that have relatively more facilities such as Ventura and Ojai.
In order to avoid this factor, an alternative formula was developed based
only on the equal weighting of population and taxes. The results of this
formula are shown in Table 14 below:
000172
Management Partners, Inc. DRAFT REP RT Page 37
Revenue
Property
Allocation
Branch
O.C. %
Tax Share
Difference
Change
Camarillo
21.40010
22.36%
-0.99%
($79,911)
Fillmore
2.20%
1.37%
0.86%
$69,509
Moorpark
7.40%
8.59%
-1.17%
($94,558)
Ojai
5.00%
2.88%
2.11%
$170,132
Port Hueneme
5.60%
4.55%
1.05010
$84,369
Simi
22.80%
22.23%
0.56%
$45,070
Ventura
24.80%
23.12%
1.67%
$134,812
Unincorporated
10.80%
14.80%
-4.01%
($323,535)
One factor that is more problematic is that application of this formula,
which includes circulation as a key factor, tends to reward those
communities that have relatively more facilities such as Ventura and Ojai.
In order to avoid this factor, an alternative formula was developed based
only on the equal weighting of population and taxes. The results of this
formula are shown in Table 14 below:
000172
Management Partners, Inc. DRAFT REP RT Page 37
Ventura County Library
Analysis of Service and Fiscal Position
TABLE 14: PROPERTY TAX ALLOCATION CHANGES USING TAx/PoPULATION
FORMULA
Revenue
This does mitigate the gains to high circulation cities seen previously in
the Orange County formula, It would not, however, significantly increase
the return to the low tax revenue cities. The biggest change under this
formula is that Simi Valley would see some increase.
Option Four. Discontinue the Return -to- Source Formula for
Certain Unincorporated Areas
The fourth option is to discontinue the return-to-source formula for those
unincorporated areas surrounding cities. This would be the most far
reaching way to address the problems facing the Library system today.
Under this approach the return-to-source provisions of the MOU would be
revised to apply only to monies collected within incorporated areas or
within an Area of Interest which does not include a city where a library
already exists. Revenues derived from the unincorporated areas would
then become discretionary and be programmed by the Library
Commission in two ways:
1) To provide services to unincorporated residents who do not have
a nearby city library
2) To ensure that all libraries can provide a minimum standard of
service.
A fundamental premise of this approach is that the notion of service areas
based on political jurisdictions would be replaced with the use of Areas of
Interest. These are official boundaries recognized by the county and all
the cities in the county that represent "communities of interest." A very
important policy associated with Areas of Interest is that there will only be
one city within each area of interest.
000173
Hage;3ts DRAFT REPORT Management Partners, Inc.
Property Tax
Allocation
Branch
Tax/Pop.
Share
Difference
Change
Camarillo
20.3%
22.36%
-2.01%
$(129,618)
Fillmore
2.4%
1.37%
1.07%
$ 68,702
Moorpark
7.9%
8.59%
-0.69%
$ (44,479)
Ojai
3.3%
2.88%
0.46%
$ 29,912
Port Hueneme
6.0%
4.55%
1.50%
$ 96,608
Simi
24.4%
22.23%
2.21%
$ 142,346
Ventura
23.7%
23.12%
0.57%
$ 36,572
Unincorporated
11.8%
14.80%
-3.03%
$(195,532)
This does mitigate the gains to high circulation cities seen previously in
the Orange County formula, It would not, however, significantly increase
the return to the low tax revenue cities. The biggest change under this
formula is that Simi Valley would see some increase.
Option Four. Discontinue the Return -to- Source Formula for
Certain Unincorporated Areas
The fourth option is to discontinue the return-to-source formula for those
unincorporated areas surrounding cities. This would be the most far
reaching way to address the problems facing the Library system today.
Under this approach the return-to-source provisions of the MOU would be
revised to apply only to monies collected within incorporated areas or
within an Area of Interest which does not include a city where a library
already exists. Revenues derived from the unincorporated areas would
then become discretionary and be programmed by the Library
Commission in two ways:
1) To provide services to unincorporated residents who do not have
a nearby city library
2) To ensure that all libraries can provide a minimum standard of
service.
A fundamental premise of this approach is that the notion of service areas
based on political jurisdictions would be replaced with the use of Areas of
Interest. These are official boundaries recognized by the county and all
the cities in the county that represent "communities of interest." A very
important policy associated with Areas of Interest is that there will only be
one city within each area of interest.
000173
Hage;3ts DRAFT REPORT Management Partners, Inc.
Ventura County Library
Analysis of Service and Fiscal Position
The current Areas of Interest within the county are shown in Figure 12
below:
FIGURE 12: VENTURA COUNTY AREAS OF INTEREST
Under this approach libraries in the same Area of Interest would be
managed jointly to serve the community. Under the current system
libraries located in separate service areas are managed independently,
even if they are in the same community. For example, the Ojai Library
and the Meiner's Oaks Library are located just over two miles from each
other and yet because they are in separate service areas they are subject
to separate management and funding rules.
If this option were to be implemented, the Library Commission would
recommend the use of unallocated revenues to cover operating expenses
at the branches. The Commission could also choose to recommend
reducing expenditures by changing the delivery of services within an
area. Under this approach, approximately 60% of total funding is subject
to return-to- source restrictions and will be dedicated to the incorporated
areas.
Benefits and considerations surrounding this option include the following:
Transitioning to such an approach would not require any changes
in the existing allocations.
Management Partners, Inc. DRAFT REPORT Page 39
Ventura County Library
Analysis of Service and Fiscal Position
The Library system operated for many years in a successful
manner without the need for a funding allocation; some discretion
is not out of bounds.
Cities and Ventura County would both be contributing to this pool
of discretionary funding in roughly equal amounts.
Cities can and should have control of monies collected in the
incorporated area, and this system would preserve this return-to-
source guarantee. However the rationale for cities having return-
to-source control over monies generated in surrounding
unincorporated areas is much more tenuous and this system
would vest making recommendations over the use of such funding
with the Library Commission.
This approach would provide a framework for resolving the
Thousand Oaks contract funding" issue and could be used to
prevent further such agreements.
Cities are the -municipal service provider in their Area of Interest
according to county policy. Therefore, to the extent that
unincorporated communities exist, they are not expected to grow
into municipalities. This reduces the rationale for the library
serving as a civic focal point or "city hall."
The main problem with this approach would be the fact that cities would
lose automatic return-to-source control over tax proceeds generated in
surrounding unincorporated areas. Table 15 below provides an estimate
of what this differential would be.
Page 40 DRAFT REPORT Management Partners, inc.
Ventura County Library
Analysis of Service and Fiscal Position
TABLE 15: EFFECT OF SHIFTING UNINCORPORATED TAX DOLLARS FROM CITY
CONTROL
The county would also lose automatic control over funds generated in
unincorporated areas, within Areas of Interest which do not include a city
(return-to-source would still apply to Oak Park and Piru on the same basis
as in an incorporated city), or which are within an Area of Interest which
includes a city.
To address concerns, the Library system should amend its budget
policies to provide an agreed-upon structure for the Commission's
allocation of property tax, such that it would be clear that service to
unincorporated residents served from a library located in a city should be
a heavily weighted factor when it comes to making budget decisions. In
addition a budget policy should be written that would prohibit reductions
of service in areas that have only one facility. While this will significantly
reduce the potential discretion of -the Commission, in reality service
reductions in areas which currently have only one library could not be
justified when other areas have more than one branch. It is also thought
that this policy would be necessary to allay threshold concerns that some
members may have with regard to loosening up the return to source
restrictions. In addition the Los Posas Area of Interest revenues would be
pledged to Camarillo, because this Area of Interest was created after the
Library MOU.
Pption Five., Magffy the Return-to-Source Provisions to Exclude
Motor Vehicle In-Lieu User Fees and Interest Earnings
This approach would be implemented in conjunction with the removal of a
funding formula for PLF Area of Interest would still be the basic "service
area" used except that all property tax and local revenues derived in such
an Area would have to be used in that Area. It would give the
Commission more discretion to make service changes within service
areas.
000176
Management Partners, Inc. DRAFT REPORT Page 41
Percentage of
Property Tax
Property Tax
Property Tax
Generated in
Generated in
Total
Generated in
Unincorp.
Unincorporated
Service
Cities
Areas
Service Area
Area (estimate)
Area Tax
(estimate)
(estimate)
1 Camarillo
28.8%
$1,440,848
$1,025,786
$414,964
2 Fillmore
37.8%
$88,281
$54,930
$33,370
3 Moorpark
11.4%
$553,527
$490,427
$63,102
4 Ojai
47.4%
$185,583
$97,587
$87,966
5 Port Hueneme
55.0%
$293,195
$131,962
$161,257
6 Simi Valley
8.6%
$1,432,469
$1,309,437
$123,192
7 Ventura
11.9%
$1,489,820
$1,312,426
$177,289
The county would also lose automatic control over funds generated in
unincorporated areas, within Areas of Interest which do not include a city
(return-to-source would still apply to Oak Park and Piru on the same basis
as in an incorporated city), or which are within an Area of Interest which
includes a city.
To address concerns, the Library system should amend its budget
policies to provide an agreed-upon structure for the Commission's
allocation of property tax, such that it would be clear that service to
unincorporated residents served from a library located in a city should be
a heavily weighted factor when it comes to making budget decisions. In
addition a budget policy should be written that would prohibit reductions
of service in areas that have only one facility. While this will significantly
reduce the potential discretion of -the Commission, in reality service
reductions in areas which currently have only one library could not be
justified when other areas have more than one branch. It is also thought
that this policy would be necessary to allay threshold concerns that some
members may have with regard to loosening up the return to source
restrictions. In addition the Los Posas Area of Interest revenues would be
pledged to Camarillo, because this Area of Interest was created after the
Library MOU.
Pption Five., Magffy the Return-to-Source Provisions to Exclude
Motor Vehicle In-Lieu User Fees and Interest Earnings
This approach would be implemented in conjunction with the removal of a
funding formula for PLF Area of Interest would still be the basic "service
area" used except that all property tax and local revenues derived in such
an Area would have to be used in that Area. It would give the
Commission more discretion to make service changes within service
areas.
000176
Management Partners, Inc. DRAFT REPORT Page 41
Ventura County Library
Analysis of Service and Fiscal Position
If this approach were implemented, the basic service areas would be
constructed and have a return-to-source guarantee as shown in Table 16
below:
TABLE 16: RETURN-TO-SOURCE WITH EXCLUSIONS
Camarillo
17,01more .
Moorpark
Oak Park
Ojai (includes Oak View and Meiner's Oaks)
Piru
Port Hueneme / Oxnard (includes El Rio)
Simi Valley
Ventura (includes Saticoy)
Area Property Tax Estimated Branch
and Local Revenues
$1,506,997
$97,986
$559,974
$261,945
$556621
$30,177
$534,618
$1,507,160
$1,691,689
Costs
$1,508,676
$163,992
$623,005
$263,916
$70.8,564
$64,977
$620, 588
$1,720,825
$2,086,526
Under this approach relatively more funding is distributed via formula by
Area. Key considerations are:
• Under this approach approximately 77% of revenues would be
allocated to service areas by formula.
• The Commission would have discretion with respect to the
allocation of almost $2 million of County motor vehicle in-lieu user
fees and interest earnings.
• Service within the same Area of Interest would be managed
jointly, but only have a return-to-source guarantee associated with
property taxes collected within that Area.
• All Areas of Interest except Camarillo and Oak Park, would need a
funding allocation from unrestricted funding recommended by the
Commission to maintain current service levels
Management Partners believes that implementation of any of the above
changes, except for Option Three (use of the Orange County-type
formula), would represent an improvement. In terms of long-term
management of the Library System, we believe that Option Four (the
option of dropping the return-to-source guarantee with respect to property
taxes collected in certain unincorporated areas) is the best approach. It
provides the Commission with the flexibility to address the issues it faces
and still provides significant guarantees to member jurisdictions.
000:177
Page 42 DRAFT REPORT Management Partners, Inc.
Ventura County Library
Analysis of Service and Fiscal Position
Recommendation 2: Drop the return-to-source guarantee with
respect to property taxes collected in unincorporated areas
and let the Library Commission use those funds to balance
service levels across the system. This would represent a major
shift in control from individual member jurisdiction to the Library
Commission. To address concerns, the Library system should
amend its budget policies to provide an agreed-upon structure for
the Commission's allocation of property tax, such that it would be
clear that service to unincorporated residents served from a library
located in a city should be a heavily weighted factor when it
comes to making budget decisions. In addition a budget policy
should be written that would prohibit reductions of service in areas
that have only one facility. Whilethis will significantly reduce the
potential discretion of the Commission, in reality service
reductions in areas which currently have only one library could not
be justified when other areas have more than one branch. It is
also thought that this policy would be necessary to allay threshold
concerns that some members may have with regard to loosening
up the return to source restrictions.
The basic point is that until someone is empowered to look at system-
wide service delivery from at least an Area of Interest perspective, the
Library system will continue to operate on a strictly "have and have-not"
basis and be tied to the 1997 distribution of facilities and service levels.
- •.�J
Providing additional new tax support to operate the library system
is justified. Ventura county provides a low level of service because
it puts relatively little money into library services
To recommend this as a. solution to the current situation would not
represent a practical short term solution. The fact is that any
significant new revenues would flow from some type of county-
wide tax measure. No matter how justified this will not happen
without a substantial effort to build public and policy maker
support.
The library also should prove that it can manage the system to optimize
service with the resources available. People are much more likely to vote
for additional money for an enterprise which they believe has made good
use of the taxes already provided.
There are a couple of relatively minor revenue options which we would
recommend, for the short term however.
Recommendation 3: Library staff should develop a program
to work with each city to maximize any market based revenue
opportunities which might exist at that city's facility(s).
000175
Management Pa
Page 43
Ventura County Library
Analysis of Service and Fiscal Position
There are a number of market based revenue opportunities a
library may be able to take advantage of. These include
generating income from renting meeting rooms and halls, private
leases on site, the sale of specialized services, such as access to
proprietary databases or the ability to purchase a book on -line,
advertising and paid sponsorships from private firms. These
opportunities will not generate substantial revenues, but they are
worth considering and implementing on a case by case basis. This
is best done on a branch level, but the Library would benefit from
a structured work program to look for such opportunities at each
branch.
Recommendation 4: Develop a development impact fee for
the acquisition of books and materials and technology.
Some cities are already levying a development impact fee for
library facilities. This would build on that approach by having a
uniform development impact fee to pay for materials and
technology .A similar fee for the addition of materials as well as
technology to existing branches has also been implemented by
some local governments. Stanislaus County is one example. It
could be developed like the County's existing traffic impact fee,
where a fee for County traffic impacts is added to any city
infrastructure development impact fees. The exact fee amount
could be decided by the cities and the county, but would be based
on a shared nexus study establishing the basis for a fee.
DRAFT REPORT Management Partners, Inc.
Ventura County Library
Analysis of Service and Fiscal Position
CONCLUSION
The Ventura County Library is at a crossroads. While the MOU form of
governance established in 1997 has improved the organization over the
past six years, the budget crisis in the State of California has drastically
altered the playing field. Continuing revenue losses has resulted in a
conflict between two provisions of the MOU: return-to-source of tax
revenues to member jurisdictions and guaranteed minimum hours of
library service. As state revenues have dropped, revenues in the service
areas have proved insufficient to provide the guaranteed hours of service.
Service levels have dropped through the years to the point that, for a
county of its apparent wealth (based upon median income), the Library
system offers extremely low service levels in comparison with its peer
county systems.
This report has shown that a regional system benefits its members. In
order to move forward, the Library system's form of governance and
allocation of revenues must be re-examined to ensure long-term viability.
While there is room for improvement, the current MOU form of
governance works well and is not in need of immediate overhaul.
However, by altering the return-to-source MOU provision to provide the
Library Commission with more discretionary funds, the Commission will
have the ability to balance service levels throughout the system while
member jurisdictions retain control of property tax revenues generated
within their jurisdictions.
Such a change necessarily requires some loss of control to the member
jurisdictions and an investment of trust in the Library Commission to make
sound decisions that optimize the service which can be provided under
difficult circumstances. Taking such a leap of faith is a risk. The potential
return, however, is a sustainable regional library system with improved
service levels and economic benefit to all its members.
Management Partners, Inca DRAFT REPORT Page 45
Ventura County Library
Analysis of Service and Fiscal Position
ATTACHMENT A - CURRENT SYSTEM MOU
UKAJ- I HEPORT Management -Partners, Inc.
Final 11/25197
FREE LIBRARY SYSTEM AND THE CITIES OF CAMARILLO, FILLMORE,
MOORPARK, OJAI, PORT HUENEMEE,
This is a Memorandum of Understanding between. the Ventura County Free Library
System (hereinafter "Library System") and the Cities of Camarillo, Fillmore, Moorpark, Ojai,
Port Hueneme, San Buenaventura and Simi Vailey (hereinafter "Cities") relating to the joint
administrative and operational oversight of County library services throughout Ventura
LOS=
r- I 11M.-TUMIA1
The parties to this MOU, with the consent of their respective legislative bodies, hereby
join together for the purposes of: (1) providing improved library services within their
communities; and, (2) establishing a Library Services Commission (hereinafter
"Commission "), .to exercise the powers described herein.
2. Term
This MOU shall commence upon the execution of this document by all -the parties
hereto. An individual city may withdraw from participation in this MOU and thereby
membership on the Commission upon the giving of thirty (30) days written notice from the
City's legislative body to all parties hereto.
Withdrawal from the Ventura County Free Library System shall be in accordance with
I
the provisions contained in California Education Code, Title 1, Division 1, Part 2, Chapter 6,
Article 1, Sections 19100 et seq. In the event a city withdraws in accordance with the
procedural provisions in this statute, said city shall receive those Library System property taxes
t• Library System revenues directly attributable to the. incorporated area of that
jurisdiction. Real and personal property along with any debt directly attributable to said re at
and personal, property shall be transferred under the condition that the city continues to provide
for a public library. With the exception of system-wide resource books and materials n
available in any other system library, the withdrawing city will retain books and materials, for
use in a public library.
3. Library Services Commission
There is hereby created a Library Services Commission (hereinafter "Commission")
which shall administer its responsibilities under this MOU and, in particular, provide -policy
oversight of Library System administrative and operational activities.
4. Commission Membership
The Commission shall consist of eight (8) regular members which shall include one city
council member appointed by the respective legislative body of each of the seven City service
areas and one Board of Supervisors member for the County service area as describei
hereinafter. Each regular member shall have alternates as designated by their legislative body.
Such alternates shall also be an elected member of that body. An alternate shall have full
voting privileges in the absence of the regular member.
5. Organization and Actions of the Commission
In January of each year., the Commission shall select a chairperson and a vice-
chairperson and shall meet quarterly (January, April, July, October) or more frequently as
0 0 0.11 8, 4
determined by the Chair of the Commission. A minimum of five (5) members must be present
to constitute a quorum. A simple majority of the quorum present shall be required for approval
of any business presented to the Commission.
6. Commission's Recommendation Powers
The Commission is empowered to oversee the policy matters of the Library System and
make recommendations"to the Board of Supervisors.
The Commission. is empowered to review and recommend the Library System's annual
budget and any subsequent amendment to the Board of Supervisors in accordance with the
County budget schedule.
The Commission shall participate in the selection of the Library System Director by
providing a list of not more than three (3) candidates, with a recommendation listed in order
of preference. Further, annual performance evaluations of the Library System Director shall
be reviewed by the Commission and recommendations, if any, shall be forwarded to the Board
All Commission recommendations shall be placed • the Boa Td of Supervisors agenda
within forty-five (45) calendar days from the date of the Commission's action.
141RO1111151fliff-If # � 6
The Board of Supervisors may override a 'recommendation of the Commission made
pursuant to paragraph 6, above, by a 4/5ths vote (super majority).
8. Service Areas
For the. purpose of delineating the approximate area served by the branch libraries,
Ventura County shall be divided into eight (8) service area . s for the Library System. A map ,
and boundary description of the service areas is set forth as Attachment 1. Seven service areas
relate to the seven cities which are party to this MOU, respectively. The eighth service area
relates to that portion of the unincorporated area of Ventura County not otherwise included N
the other service areas. A service area may elect to transfer a portion of or all of a library's
operations
to
another service area.
The affected areas shall
develop a
transfer plan which
describes
the
operational plan and
identifies the associated
revenue.
Such plan shall be
Supervisors.
Service area boundaries may be amended, following recommendation by the
Commission and approved by the Board of Supervisors.
9. Hours of QMration and Programs
The legislative body relating to each service area will determine and set forth the role
the library plays in the community, the specific days and hours of operation, and the projects
and programming for the library(s) located within its service area boundaries. The hours of
operation and programs shall be within the budgetary allocation for the service area or through
budgetary augmentation. The library type, library name (locations) and the baseline
(minimum) service hours. are set forth in Attachment 11.
i0® Additional Services
The individual cities may contract with the Library System for additional hours of
library operation above the baseline service hours; additional purchase of books and materials
RIMINI IMITF!''IM � RIIM� =!;;II - I
specifically for the library(s) located within its service area. Financial responsibility for
additional library services may be subject to further negotiations between the. Board of
Supervisors and the individual cities requesting such additional services within their service
000186
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11. Commission Staff
Staff to the Commission shall be the Library System Director with assistance from the
seven City
Managers, or their respective alternates, and
the
County
Chief
Administrative
Officer, or
his. alternate. Each alternate shall have
the
same
powers
as the City
Managers/County Chief Administrative Officer. The seven City Managers and the County
Chief Administrative Officer shall assist with the oversight of County Library administrative
and operational activities. They shall participate in the review of the annual budget and .any
amendments as well as performance evaluations of the Library System Director. They shall
provide recommendations to the Commission as they deem necessary.
12. -Commission Additional Staff Support
The Library System shall provide the Commission any additional staff support as
p
The Library System annual budget shall be prepared in accordance with the County
budget process and schedule. The budget format shall be consistent with the revenue and,
expenditure allocation model included in the Library Service's. Plan as approved b� the Board
of Supervisors on June 17, 1997. This model incorporates the concept of Library System,
Each party to this MOU shall defend, indemnify and hold harmless other parties and
000:187
their respective officers, employees and agents against any and all claims, actions, loss,
liability or expense (including attorney fees) arising out of, based upon, or resulting in willful
or negligent acts or omissions by that party's officers, employees or agents in performance of
R
15. Amendments
This MOU may be amended by mutual written agreement of all parties hereto.
16. Effective Date of MOU
This MOU shall become effective on
17. Authorization and Execution
This MOU may be signed in counter parts, each of which shall be deemed an, original,
and all of which shall constitute one and the same MOU.
Attest ?ICHARD D. NW,1, MA
Baler Board of Supervisors
County Clerk
X
01
B
r the B6ard.of�,Suppervi ors Date
WOUNW&GIUM"Eff
.00
00018S
I rk, City Co ncil
Attest:.
Clerk, City Council
Attest: uQ'kt/
Clerk, City Council
CITY OF CAMARILLO
7
Mayor Date
B
Mayor Date
A Ift-NnD n A r) v
-22 -9 7
Date
B
17 -mayor Date
rg_�$ =
Mayor I-,,- 1\1
Date
Attest. R)A - — — — — — — — hat
DEPUTY Clerk, C •
Attest: 9 _
Clerk, C' Council
IPA -V5B
By / J x.98
City Manager bate
CITY OF SIMI VALLEY
By2LA
Ma;o4 Date
VENTURA COUNTY FREE LIBRARY SYSTEM
LIBRARY TYPES, LIBRARY NAMES (Locations) AND BASELINE (Minimum)
SERVICE HOURS
LARGE LIBRARIES
Camarillo
Simi Valley
Foster
MEDIUM LIBRARIES
Moorpark
Wright
SMALL LIBRARIES
Fillmore
Ojai
Oak Park
Prueter
NEIGHBORHOOD LIBRARIES
Meiners Oaks
Oak View
Piru
Saticoy
Soliz-El Rio
K no
I'm'
Avenue 19
I
ITHRO Wil FIER[
111111111111
Understanding between Ventura County Free Library System (hereinafter' County") and
the Cities of Camarillo, Fillmore, Moorpark, Ojai, Port Hueneme, San Buenaventura and
Simi Valley.
�� I I dilp t R
1. The first paragraph of Paragraph 2 of the Memorandum of Understanding is
MOU and thereby membership on the Commission upon the, giving of six
WITI M,
hereto."
2. Except as expressly amended in paragraph 1, above, all provnis ons of the
remain in full force and effect,
HWMM�
, 1111111111111 =1 III
IM I I &
effective on upon the execution of this document by aH the parties
hereto.
JUTM M71 MM H T 1, i!ii: I ii
one and the same First Amendment.
Attest:-.P.ICHARD D. DEAN, County Clerk
Eioard of Supervisors
Attest:- RICHAPM D. DEAN, County Clerk
Attest:- maA-24 PI__
b,e-pv4-4 Cleiic, CitpCouncil
VENTURA COUNTY FREE
Supervisors Date
�34 61 �1741
M
By 04,,4-
Mayor bate
2
000193
Atte.st:..
Clerk, City t."ouncil
Attest:
t— �� 701-
Clerk, City Codnc1l
Attes -
I rk, ity-N&cif
3
B
Mayor Date
141,01 &-ti-IR.3 MAW,
CITY OF OJAI
Mayor Joe DeVito Date
p
Attest:_(L-�,4-,
Jerk, -CitKfo—uncil
g. Awawl4ibraryVmu."
CI
CITY OF SIMI VALLEY
BYA
or y I bate
4 3 Fed
N
�kC
L
i
Ventura County
.,� rary Assesnwnt
Districts
Proowd ay
O"roal"I m4n
�m+�taa «�atanr;k�rx�avr�s
Pas 1id'J35bn
XW�'�n�!4 a9Wa+'tek33yyer'rpt .
Cefcrtiplwai'•iCL'9'f?
A4c"meA L')
Budget Policies
(Revised June 4, 2002)
The Memorandum of Understanding sets forth a baseline level of service for hours at each
library.
2. Property tax, including vehicle license fee revenue, is to be used to support library
expenditures within the service area where it was generated.
3. In the event that service area property tax, including vehicle license fee revenue, is more
than sufficient to operate a library at the baseline level, any unbudgeted balance will be
spent within the service area from which it was generated, whether for library materials,
equipment, or building needs.
4. Additional funds generated within service areas, such as parcel tax revenues, general fund
contributions, donations, etc. can be used for any library purpose within the service area
from which the funds originated. Additional or enhanced funding is not to be used to backfill
the deficit of any service area.
5. First priority for use of state Public Library Fund revenue will be to ensure the baseline level
of service at all libraries.
6.- The cost to expand existing buildings, to undertake extensive major renovation, or to
construct new buildings shall be the responsibility of the respective city for Service Areas #1-
7, and the county for Service Area #8, except that an unbudgeted balance from the property
tax, including vehicle license fee revenue, as defined in Budget Policy #3, may be used for
building funds, provided that any interest generated accrues back to the building fund or is
used for library operations, including enhancing the level of service.
7. Henceforth, any increase in maintenance costs due to expansion, renovation, or new
construction. is the responsibility of the service area jurisdiction.
The service area jurisdiction is responsible for costs over and above those for current space.
For instance, if current space is 10,000 square feet, and 10,000 more square feet is added,
the library district will continue to pay for the costs of the original square footage, and the
service area jurisdiction will be responsible for those costs attributable to the additional
space. Even though new construction may prove more energy efficient and thus, less
costly, the existing costs remain the base for which the library district is responsible.
Additional staff required by additional space will be a responsibility of the -service area
jurisdiction. The need will be determined either by consultants or by library administration, in
consultation with the service area. In some cases, it may be possible to expand without
requiring more staff, but this requires careful space and operations planning.
If any service area jurisdiction is unsatisfied with the standard of care provided, they should
provide the service themselves, with the knowledge that any savings on the part of the
library district will be applied to services or materials at that library.
- I - 0 A9019 "-I,,
& A target contingency fund of 2 Y2% of proposed expenditures is to be included in each fiscal
year budget. This contingency percentage will be adjusted downward if, in the future, it
requires any service area to utilize local tax resources to fund such a level of expenditure.
9. A target capital repair or replacement reserve of 4% of proposed expenditures is to be
included in each fiscal year budget. This capital reserve percentage will be adjusted
downward if, in the future, it requires any service area to utilize additional local tax resources
to fund such a level of expenditure.
10. If actual revenues from any given service exceed estimates and, therefore, require no Public
Library Fund backfill, then those additional PLF revenues should be reserved for the
purchase of books and materials and distributed proportionately to all the service areas on
an equally weighted population/circulation percentage basis.
Approved by the Library Services Commission: May 9, 2002
Approved by the Board of Supervisors: June 4, 2002
-2- 0,) i IF 8