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023 of 2007 - adopting budget for the Library Fund for fiscal year 2007-2008 0 07-1 B 07-2 SALT LAKE CITY ORDINANCE No. 23 of 2007 (Adopting the budget for the Library Fund of Salt Lake City,Utah for fiscal year 2007-2008) AN ORDINANCE ADOPTING THE BUDGET FOR THE LIBRARY FUND OF SALT LAKE CITY,UTAH FOR FISCAL YEAR 2007-2008. PREAMBLE Pursuant to the provisions of Section 10-6-111 of the Utah Code Annotated, the City Budget Officer prepared and filed with the City Council a tentative budget in proper form for all funds for which budgets are required by said law, including the budget for the Library Fund, for fiscal year 2007-2008. The tentative budget was accompanied by a budget message as required by law. The tentative budget, including the budget for the Library Fund, was adopted by the City Council in Resolution No. 28 of 2007, on May 1, 2007. Section 10-6-118 of the Utah Code Annotated requires that before the 22nd day of June of each fiscal year or, August 17, in case of a property tax increase under Sections 59-2-919 through 59-2-923 of the Utah Code Annotated, the governing body shall,by resolution or ordinance, adopt a budget for the ensuing fiscal year for each fund for which a budget is required. The City budget officer has now prepared a budget for the Library Fund, in proper form. NOW, THEREFORE, be it ordained by the City Council of Salt Lake City: Passed by the City Council of Salt Lake City, Utah, this 12th day of June , 2007. (/.1- CHA ERSON ATTEST: • PU Y ITY RE ORDER Transmitted to the Maayor on June 18, 2007 . Mayor's Action: Approved. Vetoed. MAYOR ATTEST: APPROVED AS TO FORM • Salt Lake City Attorney's Office Date y-Z3 -07 CHIEF DEPUT CI Y CORDER (SEAL) { TJ*. SEAL sno- r i \�p'bii.... Bill No. 23 of 200 . Published: July 1, 2007 3 The City Library The Salt Lake City Public Library System OPERATING AND CAPITAL BUDGET FISCAL YEAR 2007-2008 BOARD DRAFT FOR REVIEW ONLY APRIL 19, 2007 • The City Library SALT LAKE CITY PUBLIC LIBRARY SYSTEM EXECUTIVE SUMMARY Very moderate growth was seen in property tax revenues for 2006-07, and the City Library assumes that a small increase in growth will be seen again in the coming year. However, balancing the budget remains a difficult challenge as use of services, facilities and collections continue to increase, and fixed costs, such as health insurance premiums, continue to increase at much greater levels. For 2007-08, the Library will not ask for an increase to the tax rate. However, plans for a new Glendale Branch Library will very likely result in a tax increase request in the next budget year. Priorities for 2007-08 include: • Selecting a new Library Director. • Adding hours for a professional position to manage the expansion of digital content and services through the Library's website. Otherwise, we will maintain current staffing levels and support health insurance increases and modest wage adjustments. • Maintaining service levels at all locations. • Seeking additional partnerships and cooperative projects to continue excellent programs and events with reduced funding. • Developing plans for the construction of a new branch in the Glendale neighborhood. BOARD DRAFT 4/12/07 Page 1 INTRODUCTION TO PLANS AND PRIORITIES MISSION STATEMENT The Salt Lake City Public Library is a Dynamic Civic Resource That Promotes Free and Open Access to Information, Materials and Services To All Members of the Community to Advance Knowledge Foster Creativity Encourage the Exchange of Ideas Strengthen Community and Enhance the Quality of Life The Salt Lake City Public Library was named Library Journal's LIBRARY OF THE YEAR for 2006—one of the most prized accolades for a public library in the United States. The proposed budget contains a modest assumption of 3.02% growth in revenues attributed to very modest growth in property taxes, higher interest rates, and small increases for fines, collections, and tenant leases. No increase to the tax rate is requested for the current year. The Library continues to be challenged by minimal natural growth in property taxes and consistent inflation in costs for human resources, such as health insurance premiums and retirement costs. This year, health insurance premiums were increased by 6.51% — an improvement over the double digit increases of the past year, but still a frustrating fixed cost increase under the present slow growth conditions. With a consistent effort to control costs and save any unexpended revenues over the past few years, the Library has built a strong capital fund to help support the construction of a new Glendale Branch. Property was purchased in April 2007, and plans will be developed for the future design and construction of the facility during 2007-08. BOARD DRAFT 4/12/07 Page 2 • • INCOME AND REVENUES THE PRESENT The revenue picture for 2007-08 is somewhat encouraging for the City Library. The certified tax rate for 2006-07 reflected 1.25% in new growth. The final 2006 tax settlement resulted in property taxes exceeding original estimates by$318,877 or 2.89%. With interest income holding at 5%+ and fine revenues projected to increase as a result of the Library contracting with Unique Management (UMI) collections system to assist in collecting overdue accounts, the Library will be able to shift funds in some budget areas to balance the budget for this year. This will be year three of a three-year commitment from the Salt Lake City Redevelopment Agency(RDA) to give back lost revenues from redevelopment projects. These funds, or rebate, have been included in the capital budget so they are not relied upon for ongoing operating expenses. THE FUTURE Legislation several years ago limited windfall revenues when property tax growth was good and also protects revenues when property tax growth is less than projected. The result is property tax revenue estimates based on the prior year's budget. We are hopeful some new growth will be realized when the 2007 certified tax rate is set in June 2007. The Library's budget for property tax revenues reflects 1.75%in new growth. BOARD DRAFT 4/12/07 Page 3 SALT LAKE CITY PUBLIC LIBRARY SUMMARY OF GENERAL PROPERTY TAX REQUEST 2007-2008 BUDGET 2005-06 2006-07 2007-08 ACTUAL BUDGET BUDGET Operating $11,821,954 $12,114,000 $12,320,805 Capital 80,000 25,000 25,000 TOTAL GENERAL PROPERTY TAX $11,901,954 $12,139,000 $12,345,805 REVENUE SOURCES OPERATING FUND AND CAPITAL FUND 2007-2008 BUDGET 2005-06 2006-07 2007-08 ACTUAL BUDGET BUDGET OPERATING REVENUE General Property Tax $11,821,954 $12,114,000 $12,320,805 Copier/Printer and Sundry Revenue 85,307 60,000 70,000 Fines and Collections 418,983 377,000 425,000 Interest 209,584 125,000 250,000 Grants 7,300 25,000 25,000 Donations 194,395 110,000 100,000 Leases 34,245 60,000 70,000 Events/Conferences 44,730 40,000 40,000 TOTAL OPERATING REVENUE $12,816,498 $12,911,000 $13,300,805 CAPITAL REVENUE General Property Tax $ 80,000 $ 25,000 $ 25,000 RDA Rebate 116,856 100,000 100,000 Interest 37,437 30,000 75,000 Prior Year Capital Fund Balance - 2,638,000 0 00M Donations and Grants 9,000 50,000 50,000 Miscellaneous/Sundry Revenue 40,176 - TOTAL CAPITAL REVENUE $ 283,469 $ 2,843,000 $ o 0004041 TOTAL BUDGET $13,099,967 $15,754,000 §Ktioicta BOARD DRAFT 4/12/07 Page 4 GENERAL PROPERTY TAX Property tax revenues for 2006-07 included very moderate new growth. The City Library is expecting that the revenue picture for 2007-08 will continue to improve and is projecting new growth of approximately 1.75%. COPIER/PRINTER AND SUNDRY REVENUE Revenues included in this budget center are computer printing, copy machines, and filming. Cost recovery software for printing has provided an additional revenue source equal to revenues received from copy machines. The Main Library and Chapman Branch continue to be desired locations for film crews. FINES AND COLLECTIONS Fine revenues are projected to increase due to the Library contracting in 2007 with Unique Management (UMI) collections system to assist in collecting overdue materials and accounts. The ability for patrons to pay fines and charges online with credit cards should also result in an increase in fine and collection revenues. INTEREST The increase in interest rates over the last two years has been encouraging. The Library is currently earning about 5.25%on funds invested in the Public Treasurer's Investment Fund. GRANTS The City Library continues its efforts to raise private funds to supplement tax and fee revenues. This year, efforts will be made to apply for grants with a particular emphasis upon strengthening the Library's capacity to cooperate with other agencies on literacy services. DONATIONS The City Library has been successful in raising funds for special programs and projects with the continued support of the Friends of the Library and private foundations and individuals. BOARD DRAFT 4/12/07 Page 5 The Library has been included as a beneficiary in several estates over the past two years. Although these funds cannot yet be budgeted, we are grateful to patrons who have thought of the Library. LEASES The City Library receives rent from the shops on Library Square. All spaces on Library Square are currently occupied. EVENTS/CONFERENCES Frequent use of library facilities, both during and after library hours, has resulted in revenue from rental fees. BOARD DRAFT 4/12/07 Page 6 SUMMARY OF OPERATING BUDGET EXPENDITURES 2005-06 2006-07 2007-08 ACTUAL BUDGET BUDGET BUILDINGS AND GROUNDS Buildings-Maintenance $ 193,831 $ 190,000 $ 195,000 Equipment-Maintenance 39,650 55,000 55,000 Buildings and Equipment-Contract Services 242,828 315,000 315,000 Building Security 125,444 140,000 120,000 Equipment Purchases 4,488 25,000 25,000 Heating and Fuel 141,688 126,000 155,000 Lights and Power 332,718 320,000 340,000 Motor Equipment-Service and Maintenance 9,029 6,000 6,000 Rent-Property and Equipment 3,002 5,000 5,000 Water 42,482 40,000 42,000 TOTAL BUILDINGS AND GROUNDS $ 1,135,160 $ 1,222,000 $ 1,258,000 MATERIALS Binding $ 2,684 $ 6,000 $ 6,000 Books and Reference Sources 929,037 1,002,500 998,305 CD-ROMS 2,492 3,000 2,000 Computer Reference Sources 161,960 105,000 155,000 Downloadable Audio - 32,500 32,500 Maps 1,028 1,000 1,000 Periodicals 92,263 132,000 134,000 Sound Recordings 315,271 300,000 300,000 Visual Recordings 327,153 300,000 300,000 TOTAL MATERIALS $ 1,831,888 $ 1,882,000 $ 1,928,805 PERSONNEL Salaries and Wages $ 6,396,473 $ 6,618,000 $ 6,850,000 Employees' Insurance 660,866 792,000 813,000 Social Security 472,054 490,000 506,000 Retirement 574,710 619,000 640,000 Unemployment Compensation 1,817 6,000 6,000 Other 14,678 16,000 18,000 TOTAL PERSONNEL $ 8,120,598 $ 8,541,000 $ 8,833,000 BOARD DRAFT 4/19/07 Page 7 2005-06 2006-07 2007-08 ACTUAL BUDGET BUDGET SERVICES Cataloging Charges $ 58,794 $ 70,000 $ 80,000 City Administrative Charge 14,943 27,000 20,000 Copier-Printer Supplies 25,881 40,000 30,000 Insurance 196,508 215,000 220,000 Library Supplies 163,524 165,000 175,000 Office Supplies 13,835 19,000 14,000 , Payroll Processing Charge 12,230 15,000 15,000 Postage 115,405 125,000 130,000 Professional and Technical 40,360 61,000 61,000 Professional and Technical-Attorney 598 8,000 8,000 Programming 129,631 135,000 140,000 Publicity 47,235 60,000 60,000 Staff Training and Development 21,774 25,000 25,000 Sundry Expense 29,010 25,000 27,000 Telephone 110,233 125,000 125,000 Travel 19,182 21,000 21,000 TOTAL SERVICES $ 999,143 $ 1,136,000 $ 1,151,000 TOTAL OPERATING EXPENDITURES $12,086,789 $12,781,000 $13,170,805 CONTINGENCY - 130,000 130,000 TOTAL $12,086,789 $12,911,000 $13,300,805 BOARD DRAFT 4/12/07 Page 8 • BUILDINGS AND GROUNDS HIGHLIGHTS Use of the Main Library and all the branches continues to increase. The demand this places on both maintenance staff and physical facilities of the City Library System is considerable. General maintenance and care provides that the overall condition of the facilities continues to be very good. In order to ensure responsible upkeep in all facilities, additional attention must be paid to rest rooms, cleaning, painting, and preventative maintenance. There has been a slight increase in the building maintenance budget line to support the ability to carry out this responsibility. Our expectations of CBI, the company that provides security in the Main Library, have been fine-tuned and will continue to reflect adjustments as necessary. Changes in procedure and efficiency have resulted in a lower cost to the Library without any compromise in security. FUTURE PRIORITIES Priorities for 2007-08 include: • Continual use of efficiencies to save costs and provide safe, comfortable buildings. • Our expectations for CBI in providing security for the Main Library continue to be defined through procedure to provide the best possible outcome. ■ Planning for future development of the Glendale property. BOARD DRAFT 4/12/07 Page 9 SALT LAKE CITY PUBLIC LIBRARY BUILDINGS AND GROUNDS BUDGET 2006-07 2007-08 BUDGET BUDGET Buildings—Maintenance $ 190,000 $ 195,000 Equipment—Maintenance 55,000 55,000 Buildings and Equipment—Contract Services 315,000 315,000 Building Security 140,000 120,000 Equipment Purchases 25,000 25,000 Heating and Fuel 126,000 155,000 Lights and Power 320,000 340,000 Motor Equipment—Service and Maintenance 6,000 6,000 Rent—Property and Equipment 5,000 5,000 Water 40,000 42,000 TOTAL BUILDINGS AND GROUNDS $1,222,000 $1,258,000 BUILDINGS—MAINTENANCE Increased use of all facilities has an impact on building maintenance. The Main Library is now over four years old and requires some repainting and upkeep due to heavy use and traffic. A minor increase is recommended to support the continuing need for attention to minor repairs and maintenance at all locations. EQUIPMENT—MAINTENANCE This budget supports ongoing maintenance costs of all equipment (not currently on maintenance contracts), including computer equipment. BUILDINGS AND EQUIPMENT—CONTRACT SERVICES The City Library routinely contracts for a variety of services when outsourcing is a more efficient and economical solution. This category includes such things as computer service and maintenance contracts, elevator maintenance, garbage removal, indoor plant maintenance, copier and alarm service contracts, and window washing. Austerity measures are implemented to reduce the frequency and scope of some contracts where possible. BOARD DRAFT 4/12/07 Page 10 • BUILDING SECURITY Temporary security at branch locations and additional staff training has had the intended effect on patterns of misbehavior. Security has been reduced at the branches. The security contract with CBI has been renegotiated to include scheduled presence at only the Main Library with visits to the branches as needed. The expectations of CBI have been fine-tuned and will continue to reflect adjustments as necessary. Changes in procedure, coverage, and efficiency have resulted in a lower cost to the Library. EQUIPMENT PURCHASES Minor equipment purchases unrelated to computers come from this budget center. This level maintains the ability to fund minor equipment requests which are prioritized in April each year. UTILITIES The budget for utilities is always challenging. The City Library continues to monitor usage and looks for ways to reduce costs. Projections for these increases are based on current costs and anticipated rate increases. MOTOR EQUIPMENT—SERVICE AND MAINTENANCE This account covers operational and maintenance costs related to the City Library's five delivery and maintenance vehicles. RENT—PROPERTY AND EQUIPMENT The amount budgeted during the past year was adequate and will sustain the Library's needs. WATER This increase is based on current costs which are a direct result of rate increases over the last year. BOARD DRAFT 4/12/07 Page 11 • MATERIALS Circulation for the City Library System has surpassed 3.3 million items per year — nearly three times the national average per capita for libraries our size. Demand for materials in all formats continues to grow, including rising interest in downloadable formats for music, film, and audible books — especially books on CD. The materials budget will see a very small increase to account for the rising cost of materials. HIGHLIGHTS In 2006-07, the City Library: • Further developed the nonfiction DVD collection. Demand for educational information in the visual format has increased significantly, and the City Library is responding to this demand. • Continued purchasing online resources to enrich collections and services for patrons,both from within the Library as well as from home with remote electronic access. New databases were added to meet the needs of patrons and the business community, including Reference USA and Price-it, a reference for antiques and collectibles. The Library continues to develop options for downloadable audio and video products. • Continued to add breadth to the Library's resources and replace and update materials throughout the collections with focus on medical reference, children's picture books, paperback fiction, and graphic novels. FUTURE PRIORITIES Priorities for 2007-08 include: • Continual examination of the City Library's priorities, the way resources are used, and deciding how best to serve the information needs of patrons. The Library will continue to consider additional databases that are available both internally and externally. The e-book collection use will be monitored and expanded when appropriate. • Expanding the periodicals collection to better meet the needs of patrons by purchasing additional copies of the most popular titles in response to increasing demand. BOARD DRAFT 4/12/07 Page 12 • Continual review of the Library's collection to keep it current and maintaining the depth and range of information, formats, and genres that are clearly in patron demand and that meet the needs of the community. A particular focus in meeting the reference needs of the community is a priority. • Placing increased efforts toward acquiring and promoting materials and databases of benefit to the business community. EFFORTS TO CONTROL COSTS • The City Library has streamlined its acquisition process and taken advantage of online ordering tools so that it is able to buy more materials with fewer staff, maximize available discounts, and provide new materials to patrons faster. Specifically, the standing order process has been refined in a way that provides greater efficiency for timely receipt of dated materials. • The City Library's centralized selection process continues to pay dividends in efficiency. It is eliminating unnecessary duplication of titles and achieving better distribution of titles to branches. The Library is purchasing materials in a more consistent way which has made the workflow for catalogers and other processors more efficient. • By cooperating with the Friends of the Library organization and systematically reviewing those books that are received as donated gifts, the City Library pulled 5,415 items into its collection that did not need to be purchased. Materials not added to the Library's collection are sold by the Friends at its semiannual book sales. • The practice of transferring materials no longer needed at one location to another location through the coordination of the central selectors without the expense of reprocessing and recataloging continues to save money by conserving staff time. BOARD DRAFT 4/12/07 Page 13 SALT LAKE CITY PUBLIC LIBRARY MATERIALS BUDGET 2006-07 2007-08 BUDGET BUDGET Binding $ 6,000 $ 6,000 Books and Reference Sources 1,002,500 998,305 CD-ROMS 3,000 2,000 Computer Reference Sources 105,000 155,000 Downloadable Audio 32,500 32,500 Maps 1,000 1,000 Periodicals 132,000 134,000 Sound Recordings 300,000 300,000 Visual Recordings 300,000 300,000 TOTAL MATERIALS $1,882,000 $1,928,805 The primary mission of the City Library is to provide access to information and ideas through materials and services for all members of the community. The Library's ability to fund the materials budget at adequate levels is a continual challenge under the most optimal circumstances due to increasing fixed costs, the continually rising cost of materials, and demand for materials in a growing variety of formats. This budget request increases the materials budget to $1,928,805, an increase of$46,805 or 2.49%. BINDING This budget reflects a minimal amount required to bind back issues of well used magazines. Binding periodicals is vital for the City Library's ability to organize and protect its in-depth magazine collection. BOOKS AND REFERENCE SOURCES The City Library will be targeting the Salt Lake City business community for enhanced reference service. The Library is expanding and upgrading its business reference resources and training staff to use them more effectively. The Library is putting more emphasis on outreach to the business community to understand its needs and to help individuals and businesses become BOARD DRAFT 4/19/07 Page 14 • more aware of what resources the Library has and how it can be of assistance. The Library will also conduct training for the community as needed. Reference staff are developing "pathways" to help patrons find available resources in various formats for topics and questions that are frequently pursued — for example, how to start a business — to ensure maximum use of the resources the Library acquires. Use of traditional print resources continues to grow, and the Library strives to sustain book collections while also experiencing exponential demand for other formats. The Library will also be continuing its focus on providing both reference and circulating materials for the art community in support of the demand that currently exists with the long-range goal of participating in the community gallery stroll. CD-ROMS Demand for this format is felt primarily in children's educational materials. COMPUTER REFERENCE SOURCES Many reference resources that were once available both in print and online are now only available as a computer reference source. Often, the cost of the online version is much more expensive. The Library is continually evaluating the best delivery method and seeks to extend availability to home and business users whenever possible. DOWNLOADABLE AUDIO Downloadable audio (also known as e-audiobooks) allows library patrons to download and listen to a variety of popular and classic fiction, nonfiction, young adult, children's, and foreign language audiobooks. This service is available from home for patrons with computer and Internet access. It is anticipated that the start-up collection will continue to grow by adding new, unabridged titles and will branch out into additional vendors. MAPS Funds are allocated to keep this ongoing collection current. BOARD DRAFT 4/12/07 Page 15 PERIODICALS Magazines and newspapers remain a timely and popular source of current and historical information for patrons. Use of the magazine collections throughout the City Library System is already heavy. Over the past few years, the number of titles being collected was reduced in response to tight budget years. Due to the high demand and increasing circulation, new titles will be added in 2007-08 and additional copies of the most popular titles will be purchased. SOUND RECORDINGS Circulation in sound recordings continues to rise at all locations, especially in the area of compact discs and books on CD. Increasing demand in the CD format will require the City Library to carefully consider the proportion of the materials budget spent on audiovisual formats. VISUAL RECORDINGS Demand for materials in the videocassette format is declining to the same degree that the DVD format becomes more common and popular. However, both formats are very popular and heavily used. Hold lists for popular items are long; and with such heavy use, standard titles must be replaced regularly. Patron requests for items not currently owned by the City Library are evermore in the nonfiction genre of the DVD format. These titles tend to be very popular and somewhat costly. Growing use by the business community creates demand for more expensive selections for training and development. BOARD DRAFT 4/12/07 Page 16 • PERSONNEL HIGHLIGHTS The City Library was named LIBRARY OF THE YEAR in 2006 by Library Journal primarily because of our excellent staff and their dedicated service to the community. While a great staff is our most valuable asset, personnel remains the most costly budget category for the City Library System. The Library continually seeks to control personnel costs while seeking fair and competitive compensation for all employees. Highlights of the year include: • Focused attention on high-quality training and staff development, sponsoring a wide variety of programs to improve and expand staff skills. • Expansion of a Staff Wellness program and activities to encourage good health, less use of sick leave, fewer work related injuries, and reduced turnover. FUTURE PRIORITIES Priorities for 2007-08 include: • Adding one staff member to manage digital content and web delivery services such as databases and resources, a great website, downloadable audio and video, literacy resources, and much more. A significant number of Salt Lake City residents now use the Library online, and the Library needs to be more responsive and equipped to respond to its growing clientele of remote users. • Completing a staff utilization and salary study with the help of outside consultants. • Increasing efforts to hire staff with needed language skills for an increasingly diverse community. The City Library has a history of hiring bilingual staff and maintaining a presence at ethnic community events. This year, the Library will involve the community more directly in its attempts to increase the diversity of its work force. • Creating an online employee information system so that library staff can have easy access to their personnel information. BOARD DRAFT 4/19/07 Page 17 • EFFORTS TO CONTROL COSTS • The City Library continues to carefully evaluate and control the current number of employees to ensure high productivity and appropriate staff utilization. • The City Library effectively manages the costs and savings of replacing long-term staff as they become retirees. • The City Library adds more options for health insurance that allow for lower premiums with higher deductibles. • In this budget year, the City Library completes a three-year adjustment needed to . reduce the past subsidy of health insurance benefits for those employees who choose to cover their spouse and/or family. • The City Library continues use of volunteer help where appropriate. • Staff are encouraged to utilize the flexible spending options to maximize their pretax dollars, which also lowers matching Social Security costs. BOARD DRAFT 4/19/07 Page 18 SALT LAKE CITY PUBLIC LIBRARY PERSONNEL BUDGET 2006-07 2007-08 BUDGET BUDGET Salaries and Wages $6,618,000 $6,850,000 Employees' Insurance 792,000 813,000 Social Security 490,000 506,000 Retirement 619,000 640,000 Unemployment Compensation 6,000 6,000 Other 16,000 18,000 TOTAL PERSONNEL $8,541,000 $8,833,000 The City Library has reason to be proud of the caliber of its work force. During another demanding year, the staff continues to be willing to work hard while being flexible and committed to the growing mission of the Library. SALARIES AND WAGES This budget recognizes the increases necessary to maintain salaries and benefits, including the performance-based merit system. It includes a 2% across-the-board wage adjustment in January 2008 to maintain competitive salaries. EMPLOYEES' INSURANCE City Library employees are covered by the Utah Local Governments Trust. Health care costs for 2007-08 increased by 6.51%. The Library desires to contribute an equal amount for each salaried staff member to support insurance. This year, the amount of money paid on each salaried employee is equal. Workers Compensation insurance for April 1, 2007, to April 1, 2008, decreased 16.6%. BOARD DRAFT 4/19/07 Page 19 SOCIAL SECURITY The rate for Social Security is 7.65%. However, the City Library experiences a lower overall rate in Social Security benefits due to increased staff use of pretax dollars for health care costs (cafeteria plan). RETIREMENT Effective July 1, 2007, the City Library's rate will increase to 11.62% (from 11.59%) of covered wages with the Utah State Retirement System. The Library continues to pay 2.65% or 1.40% into a 401(k) plan for employees who switched from the contributory to noncontributory retirement plan. UNEMPLOYMENT COMPENSATION The City Library continues to pay lower direct costs for unemployment rather than a percentage of gross wages. OTHER This budget center shows an increase as the City Library's transit pass program has been very successful. As gasoline prices remain high, library staff will continue to take advantage of this great benefit. Funds are also allocated for flu and hepatitis shots to help reduce illness among staff members. BOARD DRAFT 4/19/07 Page 20 SERVICES HIGHLIGHTS Major highlights of 2006-07: ■ The City Library continued to strengthen and enhance its role as a gathering place for civic dialogue, cultural exploration, community celebration, and life-long learning. Many organizations and agencies approach the Library for cosponsored programs which enables the Library to enrich programming opportunities while containing costs. Of particular note in this area: • The Library continued to make the most of relationships with the University of Utah, Utah Symphony and Opera, KUED television, and the tenants of Library Square, such as KCPW radio, the Salt Lake Film Center and the Community Writing Center. The Leonardo is now developing as a regular program partner. • The Library continued to develop strong relationships with ethnic communities throughout the valley. In association with the Salt Lake City Film Center, international films of both popular interest and artistic merit are being shown in the Main Library auditorium. • The Dewey lecture series continued to be very successful. Tickets for most speakers are distributed within a matter of hours of availability. Calvin Trillin and Mark Danner were two that were especially noteworthy. Additional programs for adults that were highlights were the Japanese Baseball exhibition, the Beckett festival, and "George Orwell's 1984 Fact or Fiction." • As part of the Summer Reading Program, 100 Monarch butterflies were raised in the Children's Library at Main during the summer of 2006. Hundreds of patrons came into the Library each day to view the metamorphosis. It was a combined opportunity for education, research, and experience. • The opportunities for city residents through the Community Exploration Card, launched in 2005, were expanded to include a Performing Arts Experience Card. Library users can checkout cards which will allow them to have free access to a variety of cultural activities in Salt Lake City, including the Utah Museum of Natural History, Red Butte Gardens, and the Utah Symphony. These cards are highly sought after and enjoyed by patrons throughout the city. BOARD DRAFT 4/12/07 Page 21 • Teen Services introduced a Gaming program for teens at the library. This program is similar to demonstrated gaming programs from libraries around the nation. Teens are using the Library in very different ways, and it is expected that the draw of gaming will bring new teens to be users of the City Library System. • Unique Management (UMI) collections system was implemented and has set the Library on the path to collecting monies due and recovering materials that have been out for extended periods of time. Along with the new guidelines for issuing cards, this process will make more materials available to library users. • Training classes in the computer lab continue to be very popular. • Meeting rooms are booked at an unprecedented rate, and many outside organizations are hosting their events at the City Library to reach a larger and more diverse audience. • With the creation of the Literacy Coordinator position, Library participation in local literacy projects has been expanded. A Literacy Fair was held in October 2006 and will be repeated in the fall of 2007; an adult reader's group was started in partnership with the Literacy Action Center; and many other relationships have commenced. The addition of the Community Writing Center as a tenant on the Library Square Plaza is also empowering literacy goals, as will the relationship with Horizonte Instruction and Training center, Utah Kids Ready to Read, and many others. FUTURE PRIORITIES Priorities for 2007-08 include: • Updating scheduling and print-cost recovery system to ensure public services objectives are met. • Installing a new server to increase backup protection of the III system. • Completing a staff utilization and compensation study to ensure the best use of human resources and reasonable benefits and compensation. Seek long-term solutions to continual pressures of increasing health insurance costs. • Adding a Teen Dewey lecture series to the popular Dewey lecture series. • Developing relationships with local businesses in order to institute a program series in support of the local business community and their needs and interests. BOARD DRAFT 4/12/07 Page 22 iumv- '-.a'g". .A,M/'a.""'wY' b`r 9'f1k61.'fi�Y"'"" °N"b "-- .. .+ .- ••1` % _ EFFORTS TO CONTROL COSTS ■ The City Library continues to seek and create partnerships with additional community groups to share programming costs while maintaining those that have been previously established. • The City Library facilitates ease of fine payments by implementing an online-bill- pay system, establishing the ability to accept credit cards online and at every location. ■ The City Library continues to use the services of UMI to facilitate the recovery of lost items and outstanding fines. BOARD DRAFT 4/12/07 Page 23 SALT LAKE CITY PUBLIC LIBRARY SERVICES BUDGET 2006-07 2007-08 BUDGET BUDGET Cataloging Charges $ 70,000 $ 80,000 City Administrative Charge 27,000 20,000 Copier-Printer Supplies 40,000 30,000 Insurance 215,000 220,000 Library Supplies 165,000 175,000 Office Supplies 19,000 14,000 Payroll Processing Charge 15,000 15,000 Postage 125,000 130,000 Professional and Technical 61,000 61,000 Professional and Technical-Attorney 8,000 8,000 Programming 135,000 140,000 Publicity 60,000 60,000 Staff Training and Development 25,000 25,000 Sundry Expense 25,000 27,000 Telephone 125,000 125,000 Travel 21,000 21,000 TOTAL SERVICES $1,136,000 $1,151,000 CATALOGING CHARGES The majority of these expenditures are spent through the City Library's contract with Online Computer Library Center, Inc., (OCLC) who provides Bibliographic Center for Research (BCR) pricing plans for cataloging library materials. In addition to OCLC charges, the Library uses this fund to pay for outsourcing the acquisition and cataloging of many of the 90 international languages represented in the Library's collection. The increase in this budget center is to purchase the downloading of authority records to continue the forward-looking project of increasing the accuracy and efficiency of the catalog, which are services purchased through OCLC. BOARD DRAFT 4/12/07 Page 24 CITY ADMINISTRATIVE CHARGE These charges from Salt Lake City Corporation are administrative fees for the City Library's related costs for cash management, City Council, and budget/policy review. The amount in this budget center is now more inline with the actual cost of these services. COPIER—PRINTER SUPPLIES The cost recovery on printing has reduced the paper and toner costs for the public printers, which has reduced the funds needed in this budget center. This budget also covers the costs of paper for public copiers throughout the City Library System. INSURANCE The City Library practices careful application of risk management principles and regular competitive bidding to ensure the best coverage for the lowest cost. The 4% increase in insurance premiums for the 2007 renewal was a result of an increase in coverage for the buildings to reflect current replacement costs. The current policy does include earthquake and terrorism coverage. With insurance costs becoming more stable, minimal rate increases for 2008 are probable. The increase in this budget center will also cover the additional costs associated with the new Glendale property. LIBRARY SUPPLIES The change in this budget center mirrors the change in funds allocated to purchase materials. Supplies are purchased in bulk in order to contain costs and to obtain favorable discounts, but packaging and processing materials in the newer, more popular formats (DVDs, CDs, and recorded books) cost more. OFFICE SUPPLIES Every effort is made to contain costs by purchasing through vendors with state of Utah negotiated pricing. The decrease in this budget is based on current spending patterns. BOARD DRAFT 4/12/07 Page 25 PAYROLL PROCESSING CHARGE The City Library uses independent vendors to process payroll checks and administer the Library's Section 125 Cafeteria Plan. POSTAGE The implementation of electronic mail notification for patrons with computer access has helped with postage costs. This increase is projected to cover the postal increases in May 2007. The City Library also mails The City Library News, the Library's quarterly newsletter, to all Salt Lake City residents once each year to keep them informed of the Library and its services. PROFESSIONAL AND TECHNICAL This budget supports funding for the annual financial audit, attorneys' fees, memberships in professional activities and organizations, and the occasional use of an outside consultant for library projects. During this budget year, an outside consultant will be used to perform an evaluation of the City Library's salary and benefits structure. A portion of this budget is also related to attorney consultations for employee-related issues when needed. PROGRAMMING The quality of public programs and the public's enthusiasm has been very high over the past year. Nationally known authors attract audiences that fill the Main Library's auditorium. Cultural celebrations such as Chinese New Year and Diwali Festival draw hundreds of people from diverse backgrounds. The increase in this budget is a beginning to restore the level of programming that the City Library has offered for many years before funds were reduced last year due to shrinking revenues. The Library will continue to partner with community organizations and seek funding to stretch the programming budget. PUBLICITY The current budget level is adequate to maintain publicity and printing for the coming year. BOARD DRAFT 4/12/07 Page 26 • STAFF TRAINING AND DEVELOPMENT The City Library continues to build an excellent staff and supports a training program that encourages staff to expand their expertise and knowledge in support of library goals. This budget center also supports the extensive volunteer program. SUNDRY EXPENSE This account includes such expenses as advertising for job openings and procurement bids, staff identification badges, and other miscellaneous expenses. Sundry expense items continue to be monitored in an effort to control costs. However, there has been no increase in this budget center for many years. The additional funds are necessary to ensure this budget center is more inline with current actual costs. TELEPHONE In 2001, the telephone system was upgraded and expanded. Steps continue to be taken to make the best use of telephone equipment in an effort to maintain costs, and the City Library consistently seeks the most competitive rates for service available. TRAVEL This account pays the travel-related expenses for library staff and board members to attend conferences,meetings, and workshops. In addition, all mileage allowances are paid out of this budget center at the reimbursement rate of 37.5 cents per mile. BOARD DRAFT 4/12/07 Page 27 CAPITAL BUDGET EXPENDITURES HIGHLIGHTS During 2006-07, the City Library: • Continued work on final, outstanding projects of the new Main Library such as covering the concrete of the grand staircase, correcting the lighting in the children's area, and completing the stone replacement on the plaza. ■ Replaced cooling systems at older branches. • Acquired property for a new Glendale Branch Library. ■ Replaced and upgraded network servers, upgraded outdated computer equipment, and implemented a successful online computer scheduling system. ■ Reconfigured computer areas at two branch libraries to increase patron accessibility and ease of staff assistance and supervision. FUTURE PRIORITIES During 2007-08, the City Library will: ■ Continue the development of plans for a branch library on the Glendale property and further explore the possibility of a branch in the West Capitol Hill area. • Begin the process to gradually install self-checkout equipment at all branches. ■ Plan for and begin to implement self-service holds pickup at all locations. • Implement the technology and processes necessary to allow for online fine payment and online patron registration. • Replace carpeting at two branch libraries. • Set aside funds for future capital repairs. BOARD DRAFT 4/12/07 Page 28 • • SALT LAKE CITY PUBLIC LIBRARY SUMMARY OF CAPITAL BUDGET EXPENDITURES 2007-08 BUDGET CAPITAL IMPROVEMENTS PROGRAM Main Library $ 120,000 Branch Building Fund 2,900,000 TECHNOLOGY ENHANCEMENT Systems Fund 200,000 VEHICLE REPLACEMENT FUND 10,000 BUILDINGS AND GROUNDS Capital Repairs, including carpeting at branches 200,000 PRIOR YEAR/CONTINGENCY 200,000 TOTAL CAPITAL EXPENDITURES $3,630,000 BOARD DRAFT 4/19/07 Page 29 CAPITAL IMPROVEMENTS PROGRAM The City Library's Capital Improvements program will focus on the development of plans for a branch library to be built on the Glendale property. TECHNOLOGY ENHANCEMENT Computer equipment is heavily used and funds are needed on an annual basis to upgrade and expand the computer system. The Library will also work toward installation of self-service checkout stations at all branches. Self-checkout at the Main Library supports the circulation of nearly 30,000 items a month, an amount comparable to the monthly circulation at Sprague. VEHICLE REPLACEMENT FUND Continue ongoing plan of saving for vehicle replacement. BUILDINGS AND GROUNDS This fund supports ongoing major capital repairs at all locations as needed, including carpet replacement in 2007 at both the Day-Riverside and Chapman Branch Libraries. PRIOR YEAR/CONTINGENCY This fund is maintained to deal with carry over projects and emergency or unanticipated expenses. BOARD DRAFT 4/12/07 Page 30