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031 of 2006 - Adopting the Library Fund for Fiscal Year 2006-2007 . 0B 0606--31 SALT LAKE CITY ORDINANCE No. 31 of 2006 (Adopting the budget for the Library Fund of Salt Lake City, Utah for fiscal year 2006-2007) AN ORDINANCE ADOPTING THE BUDGET FOR THE LIBRARY FUND OF SALT LAKE CITY, UTAH FOR FISCAL YEAR 2006-2007. 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 2006-2007. 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 2006, on May 2 , 2006. 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: SECTION 1. PURPOSE. The purpose of this ordinance is to adopt the budget for the Library Fund, for fiscal year 2006-2007. All conditions precedent to the adoption of the budget for the Library Fund have been accomplished. SECTION 2. ADOPTION OF BUDGET. The budget attached hereto and made a part of this Ordinance, shall be, and the same hereby is adopted as the budget for the Library Fund of the City for the fiscal year beginning July 1, 2006 and ending June 30, 2007, in accordance with the requirements of Sections 10-6-105, 10-6-118 and 59-2-923 of the Utah Code Annotated. The budget for the Library Fund is subject to the approval of the Mayor and reconsideration of the City Council pursuant to Section 10-3-1214 of the Utah Code Annotated. SECTION 3. FILING OF BUDGET. The City Budget Officer is hereby authorized and directed to certify and file copies of the budget with the State Auditor as required by Section 10-6-118 of the Utah Code Annotated. SECTION 4. PUBLIC INSPECTION. The City Budget Officer is hereby authorized and directed to certify and file copies of the budget in the office of said Budget Officer and in the Office of the City Recorder, which budget shall be available for public inspection during regular business hours as required by Section 10-6-119 of the Utah Code Annotated. SECTION 5. EFFECTIVE DATE. This Ordinance shall be deemed effective on July 1, 2006. Passed by the City Council of Salt Lake City, Utah, this 1 5 th day of June , 2006. 2 $ 7.Lyi CHAIRPERSON ATTEST: ( -4)41421/4 VI llt-1-€._ite CHIEF DEPUTY C RECORDER Transmitted to the Mayor on June 16, 2006 • Mayor's Action: K Approved. Vetoed. MAYOR ATTEST: J CHIEF DEPUT C RE ORDER ti,'; ) . Sue aty La' e (pity Nitalney s Office ` `�� Dafo y- zs-cy tr'.t y5„f.? fn.�. '+fair, t Ey /rii, "z/. ........„ (SEAL ;�c., w t: A.,�, 1 ^t t Bill No. 31 'of 2006. Published: .Tnly t , 2006 • I`Ordinance 06\Budget\Adopt final library budget doc 3 IIII The City Library MEM THE SALT LAKE CITY PUBLIC LIBRARY SYSTEM Operating and Capital Budget Fiscal Year 2006-2007 The City Library The Salt Lake City Public Library System OPERATING AND CAPITAL BUDGET APPROVED BY LIBRARY BOARD OF DIRECTORS APRIL 20, 2006 FISCAL YEAR 2006-2007 TABLE OF CONTENTS EXECUTIVE SUMMARY 1 INTRODUCTION TO PLANS AND PRIORITIES 2 INCOME AND REVENUES 3 • Summary of General Property Tax Request 4 • Revenue Sources Operating Fund 4 • Revenue Sources Capital Fund 4 OPERATING BUDGET EXPENDITURES • Summary of Operating Budget Expenditures 7 • Buildings and Grounds 9 • Materials 12 • Personnel 17 • Services 21 CAPITAL BUDGET EXPENDITURES 27 • Summary of Capital Budget Expenditures 28 BUILDING DESCRIPTIONS • Main Library • Anderson-Foothill Branch • Chapman Branch • The Corinne and Jack Sweet Library • Day-Riverside Branch • Sprague Branch APPENDIX • Strategic Plan 2006-2009 A— 1 . • . . The City Library THE SALT LAKE CITY PUBLIC LIBRARY SYSTEM EXECUTIVE SUMMARY The final settlement of property taxes for 2005 resulted in a 1.95% shortfall of projected revenues. Although the library's tax rate will be set based on the 2005-06 budget, it is unlikely - that any growth will be realized for 2006-07. Therefore, the 2006-07 budget proposal is based upon the City Library's last year's budgeted property tax revenues. No increase in the tax rate is requested. Reductions will be necessary in materials, programs, and capital savings to balance the budget. Priorities for 2006-07 include: • Maintaining current staffing levels and supporting 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. • Continual efforts to support literacy programs throughout the Library System. • Completing scheduled replacement of cooling systems at branches. BOARD RECOMMENDATION 04/20/06 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 A poll conducted by Dan Jones and Associates in 2005 indicated that the City Library is ranked most highly (6.5 out of 7) among city services by a valid sampling of the opinion of citizens living in Salt Lake City. The Library System continues to be recognized throughout the United States for excellence in services and facilities and was recently named as one of only 80 libraries in the country out of hundreds of nominations to be included in a book called The Heart of the Community: Libraries We Love. Use of libraries continues to increase, and circulation per capita continues to be measured at nearly three times the national average for comparable cities. The challenge is growing as the City Library strives to provide the high level of service the citizens of Salt Lake City have come to need at a time when revenues are reduced or stagnant. Projecting revenues from property taxes is becoming more difficult, and the high and growing percentage of successful appeals to property tax assessments will pose a serious dilemma if the trend persists. Given the final 2005 tax settlement information for the 2005-06 fiscal year, this budget proposal has been developed with the assumption that revenues for next year can only be assumed to be equal to the budget for the prior year since the Library received less than originally projected for 2005-06. Some fixed costs will clearly require additional funding, particularly health insurance and maintaining the current staffing level. To balance the budget, the City Library proposes moderate decreases to materials, programs, and capital fund growth. This budget also reduces the operating contingency by 13.33% to $130,000. While working with these reductions, the City Library will continue to provide the highest quality of service possible. The most recent Strategic Plan calls for improved efficiencies in operations, services and collections, collaborations with outside programming partners, increased efforts in reaching underserved communities, and an emphasis on literacy and youth programs. BOARD RECOMMENDATION 04/20/06 Page 2 INCOME AND REVENUES THE PRESENT The revenue picture for 2006-07 is discouraging for the City Library. We were anticipating some increase in property tax revenues this year due to an improving economic climate, but • instead, received a final settlement that brings revenues to $237,046 (1.95%) less than projected for the year. With increases in interest income and fine revenues, the Library will be able to reduce some budget areas and utilize the operating contingency to balance the budget for the year. The City Library is grateful for the rebate from the Salt Lake City Redevelopment Agency. The 2006-07 budget will be year two of a three-year commitment. This source of revenue has been included as a capital investment to ensure that these funds are recognized as shorter term and not relied upon for ongoing operating expenditures. THE FUTURE Legislation several years ago limited windfall revenues when property tax growth was good and also protected revenues when revenues were less than projected with the result being property tax revenues are based on the prior year's budget. Since it is very possible that no growth will be realized in the coming year, the Library's budget for property tax revenues will probably remain the same as 2005-06. However, the loss of revenues experienced in 2005-06 will not be recouped. BOARD RECOMMENDATION 04/20/06 Page 3 SALT LAKE CITY PUBLIC LIBRARY SUMMARY OF GENERAL PROPERTY TAX REQUEST 2006-2007 BUDGET 2004-05 2005-06 2006-07 ACTUAL BUDGET BUDGET Operating $12,074,747 $12,059,000 $12,114,000 Capital 250,000 80,000 25,000 TOTAL GENERAL PROPERTY TAX $12,324,747 $12,139,000 $12,139,000 REVENUE SOURCES OPERATING FUND AND CAPITAL FUND 2006-2007 BUDGET 2004-05 2005-06 2006-07 ACTUAL BUDGET BUDGET OPERATING REVENUE General Property Tax $12,074,747 $12,059,000 $12,114,000 Accumulated Judgment Levy, prior years 243,920 - - Copier/Printer and Sundry Revenue 58,116 67,000 60,000 Fines and Collections 365,001 360,000 377,000 Interest 96,837 50,000 125,000 Grants 36,100 15,000 25,000 Donations 201,041 120,000 110,000 Leases 56,099 60,000 60,000 Events/Conferences 58,506 40,000 40,000 TOTAL OPERATING REVENUE $13,190,367 $12,771,000 $12,911,000 CAPITAL REVENUE General Property Tax $ 250,000 $ 80,000 $ 25,000 RDA Rebate - 100,000 100,000 Interest 17,650 10,000 30,000 Prior Year Capital Fund Balance - 890,000 EST 1,500,000 Donations and Grants 42,691 50,000 50,000 TOTAL CAPITAL REVENUE $ 310,341 $ 1,130,000 $ 1,705,000 TOTAL BUDGET $13,500,708 $13,901,000 $14,616,000 BOARD RECOMMENDATION 4/20/06 Page 4 GENERAL PROPERTY TAX Property tax revenue growth has been somewhat weak over the past few years. This year's final settlement indicates a distressing and confusing set of circumstances. The City Library did not receive the projected property tax revenues, due in part to a high number of appeals and the inability of Delta Airlines to meet their tax obligations to the City of Salt Lake. - Therefore, the budget for 2006-07 is being developed with an assumption that the property tax revenues will be equal to those budgeted last year. COPIER/PRINTER AND SUNDRY REVENUE Copy machine revenues continue to decline as the use of the Internet increases. However, the cost recovery on printing has provided an additional revenue source. FINES AND COLLECTIONS The City Library Board of Directors raised fines and fees in 2003-04. After seeing a minor reduction in fine collections in the year following, old habits seem to be recurring and this line item will increase somewhat in 2006-07. INTEREST Interest rates are on the rise (3.2684% 7/05 to 4.5551% 3/06). This is good news from this particular vantage of the budget. 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 our 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 RECOMMENDATION 4/20/06 Page 5 A significant portion of the costs associated with the Dewey lecture series has been underwritten by generous partners. LEASES The City Library receives rent from the shops on Library Square. As of June 2006, all spaces on Library Square will be occupied. EVENTS/CONFERENCES Frequent use of library facilities, both during and after library hours, has resulted in revenue from rental fees. JUDGMENT LEVY, TAX YEAR 2006 Between June 1, 2005, and November 15, 2005, orders were issued by the Salt Lake County Board of Equalization, Utah State Tax Commission, and Third Judicial District Court for the State of Utah to reduce taxes against properties for which taxpayers have paid taxes. The report received November 22, 2005, indicates that the Salt Lake City Public Library can recover its estimated apportionment of tax refunds due to valuation adjustments by imposing a judgment levy tax. The Library Board of Directors requests that the City take the necessary steps to advertise its intent to do so and hold a public hearing as required by law. BOARD RECOMMENDATION 4/20/06 Page 6 SUMMARY OF OPERATING BUDGET EXPENDITURES 2004-05 2005-06 2006-07 ACTUAL BUDGET BUDGET BUILDINGS AND GROUNDS Buildings-Maintenance $ 182,669 $ 180,000 $ 190,000 Equipment-Maintenance 50,556 55,000 55,000 Buildings and Equipment-Contract Services 237,647 320,000 315,000 Building Security 130,848 145,000 140,000 Equipment Purchases 80,805 25,000 25,000 Heating and Fuel 97,028 126,000 126,000 Lights and Power 325,494 310,000 320,000 Motor Equipment-Service and Maintenance 8,859 6,000 6,000 Rent-Property and Equipment 3,068 6,000 5,000 Water 36,598 40,000 40,000 TOTAL BUILDINGS AND GROUNDS $ 1,153,572 $ 1,213,000 $ 1,222,000 MATERIALS Binding $ 2,440 $ 6,000 $ 6,000 Books and Reference Sources 907,350 1,045,500 1,002,500 CD-ROMS 3,228 3,000 3,000 Computer Reference Sources 86,344 105,000 105,000 Downloadable Audio - 32,500 32,500 Maps 672 1,000 1,000 Periodicals 100,396 132,000 132,000 Sound Recordings 295,937 310,000 300,000 Visual Recordings 304,793 310,000 300,000 TOTAL MATERIALS $ 1,701,160 $ 1,945,000 $ 1,882,000 PERSONNEL Salaries and Wages $ 6,110,217 $ 6,520,000 $ 6,618,000 Employees' Insurance 490,684 690,000 792,000 Social Security 452,075 482,000 490,000 Retirement 546,795 593,000 619,000 State Unemployment Compensation 5,374 10,000 6,000 Other-Utah Transit Authority 9,692 12,000 16,000 TOTAL PERSONNEL $ 7,614,837 $ 8,307,000 $ 8,541,000 BOARD RECOMMENDATION 04/20/06 Page 7 2004-05 2005-06 2006-07 ACTUAL BUDGET BUDGET SERVICES Cataloging Charges $ 62,233 $ 75,000 $ 70,000 City Administrative Charge 16,209 27,000 27,000 Copier-Printer Supplies 71,857 70,000 40,000 Insurance 190,698 215,000 215,000 Library Supplies 173,935 145,000 165,000 Office Supplies 18,763 19,000 19,000 Payroll Processing Charge 11,997 15,000 15,000 Postage 93,412 115,000 125,000 Professional and Technical 31,434 61,000 61,000 Professional and Technical-Attorney 5,464 8,000 8,000 Programming 112,468 150,000 135,000 Publicity 47,829 60,000 60,000 Staff Training and Development 10,964 25,000 25,000 Sundry Expense 19,393 25,000 25,000 Telephone 113,715 125,000 125,000 Travel 21,065 21,000 21,000 TOTAL SERVICES $ 1,001,436 $ 1,156,000 $ 1,136,000 TOTAL OPERATING EXPENDITURES $11,471,005 $12,621,000 $12,781,000 CONTINGENCY - 150,000 130,000 TOTAL $11,471,005 $12,771,000 $12,911,000 BOARD RECOMMENDATION 04/20/06 Page 8 BUILDINGS AND GROUNDS HIGHLIGHTS The continued heavy use of both the Main Library and all the branches is placing considerable demands upon both the maintenance staff and physical facilities of the City Library System. Given the high and continuing pressures on the facilities, the overall condition of the facilities remains very good. However, increased attention must be paid to rest rooms, cleaning, painting, and preventative maintenance to ensure responsible, long-term building care. One major outstanding issue from the Main Library project has been resolved in 2006 with the complete replacement of the plaza stone with granite pavers. FUTURE PRIORITIES Priorities for 2006-07 include: • Continual use of efficiencies to save costs and provide safe, comfortable buildings. • Replacement of cooling systems at the older branches. BOARD RECOMMENDATION 04/20/06 Page 9 • SALT LAKE CITY PUBLIC LIBRARY BUILDINGS AND GROUNDS BUDGET 2005-06 2006-07 BUDGET BUDGET Buildings—Maintenance $ 180,000 $ 190,000 Equipment—Maintenance 55,000 55,000 Buildings and Equipment—Contract Services 320,000 315,000 Building Security 145,000 140,000 Equipment Purchases 25,000 25,000 Heating and Fuel 126,000 126,000 Lights and Power 310,000 320,000 Motor Equipment—Service and Maintenance 6,000 6,000 Rent—Property and Equipment 6,000 5,000 Water 40,000 40,000 TOTAL BUILDINGS AND GROUNDS $1,213,000 $1,222,000 BUILDINGS—MAINTENANCE Increased use of all facilities has an impact on building maintenance. The Main Library is now over three years old and requires some repainting and upkeep due to heavy use and traffic. A minor increase is recommended here to maintain current levels of support. 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, recycling, 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 RECOMMENDATION 04/20/06 Page 10 . ... ... .a. t "f..Y` ....wYAY_.A..Ydtll_L ll...... ............ ., w- .r -" -"� Y . ,. .. .< BUILDING SECURITY Increased security in branch locations and additional staff training has had the intended effect on patterns of misbehavior. Security can now be reduced at the branches. 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 usually prioritized in April. • UTILITIES The budget for utilities is always challenging. The City Library continues to monitor usage and looks for ways to reduce costs. MOTOR EQUIPMENT—SERVICE AND MAINTENANCE This account covers operational and maintenance costs related to the City Library's three delivery and maintenance vehicles. RENT—PROPERTY AND EQUIPMENT The small decrease is based on current expenditures. WATER The current funding level should be adequate for the water usage this coming year. BOARD RECOMMENDATION 04/20/06 Page 11 MATERIALS Circulation for the City Library System has topped three million items per year — almost three times the national average per capita for libraries our size. Demand for materials in all formats continues to grow, including growing interest in downloadable formats for music, film, and audible books. With a stagnant budget picture, the materials budget will need to be reduced to a degree to support other fixed cost increases. HIGHLIGHTS In 2005-06, the City Library: • Purchased multiple copies of high-demand items to reduce the waiting time for such materials. The Library was better able to replace dated materials and to maintain the depth and range of its collections. • Continued purchasing on-line resources to enrich collections and services for patrons, including the Rosetta Stone, a language learning tool, and Thompson Gale Legal Forms. In May 2006, the Library will begin providing access at the Library and at home to recorded books that can be downloaded to a personal listening device. • Continued providing materials produced in international languages. Demand is increasing exponentially as diverse communities grow and gravitate to the Library for services and resources. FUTURE PRIORITIES Priorities for 2006-07 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 expand its electronic book collection. • Continual review of the Library's collection to keep it current and maintain the depth and range of information, formats, and genres that are clearly in patron demand. • Placing increased efforts toward acquiring and promoting materials and computer resources of benefit to the business community. BOARD RECOMMENDATION 04/20/06 Page 12 EFFORTS TO CONTROL COSTS • The City Library has streamlined its acquisition process and taken advantage of on-line ordering tools so that it is able to buy more materials with fewer staff, maximize available discounts, and provide new materials to patrons faster. • The City Library's centralized selection process is paying off. 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 9,000 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 booksales. BOARD RECOMMENDATION 04/20/06 Page 13 SALT LAKE CITY PUBLIC LIBRARY MATERIALS BUDGET 2005-06 2006-07 BUDGET BUDGET Binding $ 6,000 $ 6,000 Books and Reference Sources 1,045,500 1,002,500 CD-ROMS 3,000 3,000 Computer Reference Sources 105,000 105,000 Downloadable Audio 32,500 32,500 Maps 1,000 1,000 Periodicals 132,000 132,000 Sound Recordings 310,000 300,000 Visual Recordings 310,000 300,000 TOTAL MATERIALS $1,945,000 $1,882,000 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 increased fixed costs, the continually rising cost of materials, and increasing demand for materials in a growing variety of formats. This budget request reduces the materials budget to $1,882,000, a reduction of$63,000 or 3.24%. 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 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 more BOARD RECOMMENDATION 04/20/06 Page 14 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. • CD-ROMS Demand for this format is felt primarily in children's materials. COMPUTER REFERENCE SOURCES Many reference resources that were once available both in print and on-line are now only available as a computer reference source. Often, the cost of the on-line 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 eaudiobooks) will allow 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 will be available from home for patrons with computer and Internet access. The start-up collection is expected to grow each month by approximately 40 new, unabridged titles. MAPS Funds are allocated to keep this ongoing collection current. 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 has been reduced, BOARD RECOMMENDATION 04/20/06 Page 15 but annual increases in subscription costs require additional funding to maintain current service. However, no increase is projected for 2006-07, in part due to the number of periodicals that are no longer being published. SOUND RECORDINGS Circulation in sound recordings continues to rise at all locations, especially in the area of compact discs and recorded books. Although emphasis is placed on CDs, recorded books on cassette still is a popular format. Increasing demand in the CD format will continue to force the City Library to increase 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 on an ongoing basis. Also, growing use by the business community creates demand for more expensive selections for training and development. BOARD RECOMMENDATION 04/20/06 Page 16 • PERSONNEL HIGHLIGHTS One of the most valuable and most costly budget categories for the City Library System is personnel. Spiraling health insurance costs continue to be a great concern for the Library as with all organizations, both public and private. 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 qualitative training, sponsoring a wide variety of programs to improve and expand staff skills. • Implemented a new Internet management technology system which freed volunteers to focus on tasks such as welcoming and directing the public. • Holding several staff-wide communication sessions, or "Town Meetings," to identify cost and time-saving improvements. FUTURE PRIORITIES Priorities for 2006-07 include: • Placing greater emphasis upon recruiting an ethnically diverse work force in all classifications. • Improving management training in recognition of pending retirements. • Creating an on-line employee information system so that library staff can have instant access to their personnel information. EFFORTS TO CONTROL COSTS • The City Library receives patron reimbursement for custodial and technical assistance for convention and after-hour use of the Main Library. • The City Library will maintain the current FTE of employees. • The City Library will add more options for health insurance to allow for lower premiums with higher deductibles. • The City Library will continue its reliance on part-time staff when appropriate. BOARD RECOMMENDATION 04/20/06 Page 17 • • The City Library will reduce subsidies for those employees covering doubles and families with health insurance. • The City Library will continue use of volunteer help where appropriate. • The City Library will cross-train staff in service areas to allow for greater flexibility — this includes custodians who can provide circulation backup, computer technicians who can work public services desks, and technical services staff who support programs and events. BOARD RECOMMENDATION 04/20/06 Page 18 • • • SALT LAKE CITY PUBLIC LIBRARY PERSONNEL BUDGET 2005-06 2006-07 BUDGET BUDGET Salaries and Wages $6,520,000 $6,618,000 Employees' Insurance 690,000 792,000 Social Security 482,000 490,000 Retirement 593,000 619,000 State Unemployment Compensation 10,000 6,000 Other—Utah Transit Authority 12,000 16,000 TOTAL PERSONNEL $8,307,000 $8,541,000 The City Library has reason to be proud of the caliber of its work force. During another demanding year, the staff continue to be willing to work hard while being flexible and committed to the growing mission of the Library. SALARIES AND WAGES No additional positions are proposed for 2006-07. 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 2007 to maintain competitive salaries. EMPLOYEES' INSURANCE City Library employees are covered by the PEHP Utah Local Governments Trust. Health care costs for 2006-07 increased by 25%, due in part to some unusual and expensive individual experience over the year. As a cost containment measure, the Library continues to realign the staff portion of health insurance premiums. The Library desires to eventually contribute an equal amount for each salaried staff member to support insurance. Workers Compensation insurance for April 1, 2006, to April 1, 2007, increased 3.9%. BOARD RECOMMENDATION 04/20/06 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, 2006, the City Library's rate will increase to 11.59% (up 4.51% from the previous rate of 11.09% which was set in 2004) 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. STATE UNEMPLOYMENT COMPENSATION The City Library continues to pay direct costs for unemployment rather than a percentage of gross wages. OTHER—UTAH TRANSIT AUTHORITY The City Library will continue to promote its transit pass program to encourage staff use of alternate transportation. As gasoline prices remain high, library staff will continue to take advantage of this great benefit. Funds are also allocated for flu shots in the late fall to help reduce illness among staff members and thereby reduce use of sick leave. BOARD RECOMMENDATION 04/20/06 Page 20 SERVICES HIGHLIGHTS Major highlights of 2005-06: • • The City Library strengthened and enhanced its role as a gathering place for civic dialogue, cultural exploration, community celebration, and life-long learning. Attendance at programs hosted by the Library continues to increase. 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 has developed particularly fruitful relationships with the University of Utah, Utah Symphony and Opera, KUED television, and KCPW radio. • The Library continues 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 continues to be very successful. Tickets for most speakers are distributed within a matter of hours of availability. • 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. • Heavy use of Internet computers at all locations continues. The implementation of scheduling and print-cost recovery systems has enabled the City Library to provide more equitable access and significant cost recovery. With the generous help of )(Mission, the Library extended wireless Internet access at the branches. 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. • The City Library implemented an electronic mail notification system to provide improved communication and reduce postage costs, and will follow with BOARD RECOMMENDATION 04/20/06 Page 21 • • electronic mail notification reminding patrons when borrowed materials are about to become due. A set of new guidelines for issuing cards and collecting overdue materials in the summer of 2006 will cut losses and make more materials available to library users. • A Literacy Coordinator position was created to strengthen library participation in local literacy projects and to train staff to help all members of the community succeed in a knowledge-based society. The addition of the Community Writing Center as a tenant on the Library Square Plaza will also empower literacy goals. FUTURE PRIORITIES Priorities for 2006-07 include: • Monitoring use of new scheduling and print-cost recovery system to ensure public services objectives are met. • 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. • Developing a program series in support of the local business community and their needs and interests. EFFORTS TO CONTROL COSTS • The City Library will create partnerships with more community groups to share programming costs. • The City Library will encourage responsible and accountable borrowing by implementing a Provisional Status Card for new users, by using new means to collect overdue items, and by tightening physical access to high-theft audiovisual materials. BOARD RECOMMENDATION 04/20/06 Page 22 - - -- - SALT LAKE CITY PUBLIC LIBRARY SERVICES BUDGET 2005-06 2006-07 BUDGET BUDGET Cataloging Charges $ 75,000 $ 70,000 City Administrative Charge 27,000 27,000 Copier-Printer Supplies 70,000 40,000 Insurance 215,000 215,000 Library Supplies 145,000 165,000 Office Supplies 19,000 19,000 Payroll Processing Charge 15,000 15,000 Postage 115,000 125,000 Professional and Technical 61,000 61,000 Professional and Technical-Attorney 8,000 8,000 Programming 150,000 135,000 Publicity 60,000 60,000 Staff Training and Development 25,000 25,000 Sundry Expense 25,000 25,000 Telephone 125,000 125,000 Travel 21,000 21,000 TOTAL SERVICES $1,156,000 $1,136,000 CATALOGING CHARGES The majority of these expenditures are spent through the City Library's contract with OCLC (On-line Computer Library Center, Inc.), who provides BCR (Bibliographic Center for Research) 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 decrease in this budget center is based on current expenditures, which are in part a result of more efficient and cost- saving methods of searching OCLC. 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. BOARD RECOMMENDATION 04/20/06 Page 23 Conversations with the City Administration may lead to a change in this process, but projections for now will remain the same. COPIER—PRINTER SUPPLIES The cost recovery on printing has significantly reduced the paper and toner costs for the public printers. As patrons share in costs related to printing from the Internet, these supplies have reduced. 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, which resulted in a nominal 3% increase in insurance premiums for the 2006 renewal. The current policy includes earthquake and terrorism coverage. With insurance costs becoming more stable, minimal rate increases for 2007 are probable. However, the current budget level should be adequate. 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. PAYROLL PROCESSING CHARGE The City Library uses independent vendors to process payroll checks and administer the Library's Section 125 Cafeteria Plan. BOARD RECOMMENDATION 04/20/06 Page 24 POSTAGE The implementation of electronic mail notification for patrons with computer access held the postage budget level for 2005-06. However, with the general postal increase in January 2006, an increase is necessary. 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. 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 reduced budget still recognizes and supports an adequate level of programming. The City 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. 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. BOARD RECOMMENDATION 04/20/06 Page 25 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 in this budget center. 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 RECOMMENDATION 04/20/06 Page 26 • CAPITAL BUDGET EXPENDITURES HIGHLIGHTS During 2005-06, the City Library: • • Continued work on final, outstanding projects of the new Main Library. The most serious outstanding issue was replacement of the stone on the entire plaza, a project being completed this calendar year. • Procured a new software system to manage scheduling of high-demand Internet stations and enable cost-recovery for printing. • Began projects to repaint the outside woodwork at the Chapman and Sprague Branch Libraries. • Continued planning discussions for two future branch libraries. • Replaced two aging vans. FUTURE PRIORITIES During 2006-07, the City Library will: • Further develop plans for two new branch libraries. • Replace cooling systems at older branches. • Begin the process to gradually install materials security and self-checkout equipment at all branches. • Replace some outdated computer equipment. • Proceed with a few additional improvements to the new Main Library, such as covering the concrete of the grand staircase with an epoxy finish and adding some lighting to the children's area. • Set aside funds for future capital repairs. BOARD RECOMMENDATION 04/20/06 Page 27 SALT LAKE CITY PUBLIC LIBRARY SUMMARY OF CAPITAL BUDGET EXPENDITURES 2006-07 BUDGET CAPITAL IMPROVEMENTS PROGRAM Main Library $ 150,000 Branch Building Fund 925,000 TECHNOLOGY ENHANCEMENT Systems Fund 250,000 VEHICLE REPLACEMENT FUND 10,000 BUILDINGS AND GROUNDS Capital Repairs 150,000 PRIOR YEAR/CONTINGENCY 220,000 TOTAL CAPITAL EXPENDITURES $1,705,000 BOARD RECOMMENDATION 04/20/06 Page 28 CAPITAL IMPROVEMENTS PROGRAM The major initiatives for the City Library's Capital Improvements program were completed with the opening of the new Main Library and expansions at the Anderson-Foothill and Sprague Branch Libraries. Early planning is ongoing for proposed branches in Glendale and West Capitol Hill. TECHNOLOGY ENHANCEMENT Funds are needed on an annual basis to upgrade and expand the computer system. • Computer equipment is being so heavily used that some equipment is already wearing out. The Library also needs to install materials security systems and work toward installation of self- service checkout stations at all branches. Self-checkout at the Main Library supports the circulation of over 30,000 items a month, an amount comparable to the monthly circulation at Sprague. VEHICLE REPLACEMENT FUND Continue to save toward replacement vans. BUILDINGS AND GROUNDS This fund supports ongoing major capital repairs at all locations as needed. PRIOR YEAR/CONTINGENCY This fund is maintained to deal with carryover projects and emergency or unanticipated expenses. BOARD RECOMMENDATION 04/20/06 Page 29 NAME MAIN LIBRARY LOCATION 210 East 400 South Salt Lake City, Utah 84111 t f Anchoring Salt Lake City's civic core, Library Square provides a connection and transition from the Central Business District to the residential neighborhoods adjacent to downtown. One of the most heavily used main libraries in the United States, the new Main Library has become a major attraction for residents and visitors since its opening on February 8, 2003. A 240,000 square-foot concrete and glass structure with exceptional views of Salt Lake City and surrounding mountains, the Main Library features book, periodical and media collections of over 500,000 items; reading galleries; technology center; 315-seat auditorium and adjoining meeting spaces; small conference rooms; and selected community shops designed to enhance the City Library's mission. The adjoining plaza features a reflecting pool, garden, and granite fountain. Underground parking for approximately 600 vehicles provides parking for city and library employees, as well as library visitors. NAME , ANDERSON-FOOHILLBRANCH LOCATION 1135 South 2100 East Salt Lake City,Utah 84108 The Anderson-Foothill Branch has a high profile location on the east bench, oriented to take best advantage of its passive solar design. The pleasing design of the branch has two unique elements as part of its plan. The first is a passive solar energy design that includes earth berming, window placement for solar heating, and zone supplemental heating/cooling. The second element of this 14,900 square-foot community library built in 1985, expanded in 1992 and in 2002, is a modular design. v "! ,t- .. , Y. ,,_; , NAME t .,400," air` vi t # � -'4`"�+ 'f Y t, ,-- - , . CHAPMAN BRANCH rtrz J;ilk+ .y LOCATION , 44, 9 577 South 900 West 1 �, Salt Lake City, Utah 84104 i Serving a multiethnic community on the west side of Salt Lake City, the Chapman Branch is located on a major street with a north-south orientation. Considered to be one of the finest Carnegie Libraries in the West, this 8,900 square-foot library has two levels. Since its opening in 1918, it has been an important part of city services to westside residents. The Library was completely renovated, including updated HVAC, following the roof collapse after major winter storms during January 1993. A major remodel of the basement level meeting space in 2002 resulted in a much needed children's area which expanded service and collection space for adults on the ground level. � '" " NAME J ' ` , gip ; fit,: A } i f , . �#.� fit T ._ �££ �s " ti 4:1``' • THE CORINNE AND JACK SWEET LIBRARY t9 LOCATION 455 'F' Street Salt Lake City, Utah 84103 Built in 1985, The Corinne and Jack Sweet Library was expanded and remodeled to meet ADA requirement during 1993-94. It serves the Avenues neighborhood and is situated in the heart of the community. The Sweet/Avenues Branch is the sister branch of the Anderson-Foothill Branch using the same modular design. The branch contains over 8,000 square-feet of service space, including a community program and meeting space. .. NAME DAY-RIVERSIDE y_ : BRANCH LOCATION 1575 West 1000 North Salt Lake City,Utah 84116 This 13,000+ square-foot branch library opened in September 1996. This beautiful facility was designed to complement the residential neighborhood with sensitivity to its site on the Jordan River Parkway. An open space plan, with a large community meeting room and outside deck area, will accommodate this growing community for many years. NAME y "apt - SPRAGUE BRANCH LOCATION • 4ir NW. 2131 South 1100 East jci . ;41" Salt Lake City, Utah 84106 The Sprague Branch is situated in the very center of the business area of Sugar House. The high-gabled, English Tudor-style building has served the Sugar House community for three generations. The building was selected by the American Library Association in 1935 as the "Most Beautiful Branch Library in America." The two-level facility was renovated in 1989-90. The Reading Room on the first floor was remodeled in 1993-94. A new slate roof was installed in the fall of 1996. An expansion project to add a new, larger meeting room and remodel the building was completed in April 2001, which increased the square footage to 9,700. APPENDIX A STRATEGIC PLAN 2006-2009 Introduction For more than a century, the Salt Lake City Public Library has served our community. By bringing words, ideas and people together, we have enriched lives and enhanced our understanding of one another. The Library has earned a reputation for excellent public service, and the community has come to expect it. Always eager to raise the bar, library staff have spent the last 18 months in a rigorous process of self-inquiry. This process resulted in a revealing look into our organization, our community, and our future. It provided significant insights that led us to develop a plan that is both inspiring and achievable. The Salt Lake City Public Library is committed to innovative planning and creative action in our organization, our profession, and our community. The City Library will: • Sustain a commitment to provide visionary, innovative, and standard-setting library service and resources for the people of Salt Lake City. • Hire and cultivate a diverse work force with exceptional skills, integrity, and professional commitment. • Play a leadership role in the community and in the library profession to address and advance issues of life-long learning and intellectual freedom. • Strengthen and enhance its role as a gathering place for civic dialogue, cultural exploration, and community celebration. To meet these objectives, we will work together and with the community we serve. This document illustrates our vision and goals. However, it does not stand alone. It provides the template and guiding principles for detailed action plans created and carried out by committees and departments throughout the Library System. *** BOARD RECOMMENDATION 4/20/06 Page A-1 • The Salt Lake City Public Library will sustain a commitment to provide visionary, innovative, and standard-setting library service and resources for the people of Salt Lake City. We believe the community we serve is entitled to the best library services we can provide. We believe those services must be driven by community need and interest. We believe library services should be easy for patrons to use and should eliminate barriers to access. We believe programs should provide information, encourage life-long learning, and public discourse in our community. Areas of Emphasis: Circulation: The Library acknowledges the community's desire for more efficient and convenient methods of checkout. We will create additional self-services options throughout the System and increase the ease and convenience of various registration and circulation functions. Programs: Quality programs inform and enrich the lives of citizens. We will continue to provide excellent programs similar to the highly popular Dewey lecture series. We will pursue diverse funding to support programs and exhibits which are of local, regional, and national significance. Underserved Populations: We will find new and effective methods to reach underserved populations in the community, including seniors, immigrants, the economically disadvantaged, the unemployed and high-risk readers. Youth: We will strengthen services and programs to children and teens. Business Community: We will strengthen and expand services to the business community and vigorously promote the Library's business resources through the use of media, outreach, and programs. Collections: We will continue to expand and maintain collections that respond to community needs, including burgeoning digital formats. We will remain a responsible steward of public funds by choosing materials and formats wisely and securing materials from damage and theft. Technology: We will continue to upgrade equipment, software, electronic resources, and our website to meet the growing and changing technological BOARD RECOMMENDATION 4/20/06 Page A-2 • expectations of patrons. We will meet and anticipate those expectations while balancing the Library's resources effectively. Library Catalog: We will improve the functionality and consistency of the Library's catalog to ensure its accuracy, usability, and effectiveness. *** The Salt Lake City Public Library will hire and cultivate a diverse work force with exceptional skills, integrity, and professional commitment. We believe we have outstanding staff and volunteers that help connect our organization to the communities we serve. We believe it is a privilege to work in the library profession and this dynamic organization. We believe in managing with vision and integrity. We believe the staff have the right to a respectful, ethical, and participative work environment. Areas of Emphasis: Management: We will operate with integrity and manage from an ethical foundation. We will create a document which defines the values, goals, and objectives of the Management Team. It will be highly responsive to the changing needs of the organization. Communication: We will improve the quality of organizational communication and accountability through personal attention and the effective use of internal electronic communication. We will engage and coach staff to share ideas, resolve problems, and participate in events such as staff"Town Meetings." Accountability: We will foster a culture of integrity, professionalism, and • accountability at all levels supported by the performance planning process. Training: We will continue to build an organizational culture committed to staff training and development. We will focus on improving instruction skills and the use of library resources. Compensation: We believe our employees are our greatest resource, and we are committed to offer fair and competitive wages and benefits. Leadership Transition: We will increase the leadership capacity within the organization in preparation for future changes. BOARD RECOMMENDATION 4/20/06 Page A-3 Volunteers: We will continue to recruit and utilize excellent volunteers from throughout the community to enhance library services. We will ask our staff to embrace the challenges that realize the visions outlined here. We will ask for innovative thought and dedication to the organizational values. In return, staff can expect support and respect from the organization. *** The Salt Lake City Public Library will play a leadership role in the community and in the library profession to address and advance issues of life-long learning and intellectual freedom. We believe one person or organization can make a difference. We believe we have the knowledge and passion to be that organization. We believe there are challenges ahead for public libraries and the issues we champion. It is our obligation to be a voice in support of the values and principles inherent in our mission. We believe the public library is and always will be the cornerstone of a free and democratic society. Areas of Emphasis: Education: We will work to educate the public on issues regarding free speech, intellectual freedom, and censorship. Library Ethics: We will continue to base decisions and actions on a solid foundation of library ethics and lead others by our example. We will review and implement the recommendations of the Library's Ethics Task Force. Library Legislation: We will take an active role in working with the state legislature on library issues and funding, including an effort to raise the tax rate ceiling for public libraries. Marketing: We will promote our vision, mission, and services more effectively with an emphasis toward current nonlibrary users. Community Literacy: We will become a stronger participant in the literacy efforts of Salt Lake City to ensure that all members of the community can succeed in a knowledge-based society. *** BOARD RECOMMENDATION 4/20/06 Page A-4 • The Salt Lake City Public Library will strengthen and enhance its role as a gathering place for civic dialogue, cultural exploration, and community celebration. We believe the City Library is a place of tolerance, understanding, respect, inspiration, and community where civil behavior is practiced by staff and patrons. We believe our city will continue to grow in diversity and complexity, and we have a significant role to play in celebrating that diversity and breaking down barriers between communities. We believe in and embrace our role as an information resource and dynamic cultural institution for the city. We believe we are a sanctuary for ideas where differing viewpoints are encouraged and respected and can be shared and explored in a variety of ways. We believe in our growing role as the town square for our city and its neighborhoods. Areas of Emphasis: Accessibility: We will extend hours and access to the Main Library by exploring additional weekend hours and advocating for inclusion of the library stop in the Trax Free Fare Zone. New Locations: We will continue to explore the need for additional locations as our city grows. We recognize the branch library as a cornerstone of any neighborhood. On-line Presence: We recognize the Web as an important tool which serves as a virtual gathering place for people and ideas. We will enhance our website to ensure ease of use and reflect the electronic needs of the community. Partnerships: We will continue to cultivate and build strong partnerships with individuals, organizations, and cultural institutions in pursuit of quality programming and exhibits of interest and significance to patrons. Special emphasis will be placed on organizations that share Library Square, such as The Leonardo Project. Diversity: We are committed to providing staff, collections, programs, and services that respect and mirror the diversity of the community we serve. Growing Downtown: We will respond to the continued and future development of the downtown area by increasing our marketing efforts to new residents and enterprises. BOARD RECOMMENDATION 4/20/06 Page A-5 Cultural Experience: Through a combination of thoughtful and creative programs, exhibits, displays, collections and guides, we will enhance the library experience and strengthen our role as a major cultural resource for the city. BOARD RECOMMENDATION 4/20/06 Page A-6