AGENDA #8b

 

BUDGET WORKING PAPER

 

TO:                  W. Calvin Horton, Town Manager

                        Kay Johnson, Acting Finance Director

                       

FROM:            Kathleen Thompson, Library Director

 

DATE  :           April 20, 2005

 

SUBJECT:       Potential Reduced Expenditures

                        Potential Increased Revenues

                       

This paper offers two options in response to the Budget Review Committee’s recommendation that the Library cut costs and generate revenues in a manner that will result in a net positive effect on the tax rate of $140,000:  

 

 

Expenditures

Revenue

Net Positive Effect

Option 1

137,860

2,140

+$140,000

Option 2

77,860

62,140

+$140,000

 

 

 

 

 

 

OPTION 1:  POTENTIAL REDUCED EXPENDITURES ($137,860)

 

Items are listed in priority order for reduction.   #1 would have the least impact on library service.

 

#

REDUCTION

SAVINGS

1

Eliminate staff cell phones.

Would eliminate Town cell phones for the Director and Assistant Director.

Effects:

·         Minimal. 

600

2

Reduce supplies and services that support the facility.

Would be a 50% reduction in Public Works Grounds costs for Contracted Services (2,000) and Supplies (1,400).

Effects:

·         Minimal.

·         Would be a 50% reduction in the amount of annual plantings on site.

3,400

3

Eliminate holiday hours.

Would eliminate Martin Luther King, Jr., Memorial Day and Labor Day holiday hours.

Effects:

·         Although circulation is not heavy on these days, patrons appreciate the library being open on their days off.

3,000

 

4

Eliminate all travel.

Would eliminate support staff training, conferences and library organization dues for professional staff.

Effects: 

·         Would eliminate all training and conference travel for professional and support staff.

·         Reduced knowledge of state and national library services and trends.

·         Less effective use of existing library technology tools (Innovative system, on-line database searching, etc.) 

 

8,865

5

Eliminate rental of foreign language materials.

Would eliminate access to 600 Spanish, Asian and French materials currently borrowed from the State’s Foreign Language Collection.

Effects:

·         Use of this service is increasing each year.

·         Would eliminate a service that addresses needs of Chapel Hill’s diverse community.

·         Would eliminate a very cost-effective service. 

2,000

6

Reduce number of electronic database subscriptions.

Would eliminate 2 of 3 existing databases (Heritage Quest; Ancestry.com)

Effects:

·         Would significantly reduced the library’s genealogy resources.

1,542

7

Eliminate webmaster position.

This would save 12 Public Services staff hours per week.

Effects:

·        Would affect the timeliness of information on the library’s new web page.

12,480

 

8

Reduce staff time spent in mending/processing materials.

This would save 10 Technical Services Division staff hours per week.

Effects:

·         Would significantly reduce the amount of mending and repair of the collection weekly. 

·         Would result in purchasing replacement copies instead of broadening the depth of the collection.

8,223

9

Eliminate interlibrary loan.

This could save 18.75 Public Services Library Assistant III staff hours (20,000), service charges (2,000) and postage (1,350). 

Effects:

·         Citizens would be limited to materials owned by this library, because lending libraries only lend to other libraries, not to individual citizens.  

·         Would eliminate a basic library service.

·         Would have minimal effect on the majority of citizens; last year, the library borrowed 731 items for citizens.

23,350

10

Reduce materials budget by 20%.

Effects: 

·         Would reduce the annual accession of adult and juvenile materials by approximately 1700 items (42,400/25 = 1696 items)

·         Would increase the turnover rate (i.e. depreciation) of the existing collection.

·         Would increase staff time spent mending and binding the existing collection. 

·         Would reduce patron satisfaction.

·         Over several years, Library Master Plan goals for collection development would be negatively affected.

·         Would reduce the amount of staff time spent selecting materials.

42,400

 

11

Eliminate reserves.

This would save 18.75 Reference Library Assistant III staff hours (20,000). It would also eliminate revenue from reserves (-6,000).

Effects:

·         Would eliminate a very popular basic library service. 

14,000

12

Reduce library hours. 

Reducing library hours from 68 to 59 hours per week could save 42 Public Services Library Assistant I staff hours per week.  Would also require 33 additional page hours to shelve increased influx of returned materials, due to reduced open hours.  Savings reflects potential net gain.

Effects: 

·         Citizens would have reduced access to the library during the week.

·        Staff would have an increased workload during a shorter work week.  Staff currently circs 25,500 items per staff member per year; the state average is 15,750

18,000

 

 

 

 

TOTAL

137,860

 

OPTION 1:  POTENTIAL INCREASED REVENUES ($2,140)

 

#

REVENUE

RECOMMENDED?

AMOUNT

1

Pay phone installation.

Effect:  Planned for implementation late 2004-05 to replace free local phone in lobby.

Y

3,000

2

$20 UNC and profit group use of meeting room.

Effect:  Meeting room space is not currently available to UNC and profit groups.  Could anticipate ongoing interest in this service.

Y

1,000

3

$10 increase in out of county card (from $50 to $60 annually)

Effect:  Minimal.

Y

5,140

4

Maintenance of Effort reduction.

Effect:  There would be a proportional loss of state aid if the Town fails to meet Maintenance of Effort.  A  Town budget cut of 20% could result in a 20% cut in State Aid.

 

NA

-7.000

 

TOTAL

 

2,140

 

OPTION 2:  POTENTIAL REDUCED EXPENDITURES ($77,860)

 

Items are listed in priority order for reduction.   #1 would have the least impact on library service.

 

#

REDUCTION

SAVINGS

1

Eliminate staff cell phones.

Would eliminate Town cell phones for the Director and Assistant Director.

Effects:

·         Minimal. 

600

2

Reduce supplies and services that support the facility.

Would be a 50% reduction in Public Works Grounds costs for Contracted Services (2,000) and Supplies (1,400).

Effects:

·         Minimal.

·         Would be a 50% reduction in the amount of annual plantings on site.

3,400

 

3

Eliminate holiday hours.

Would eliminate Martin Luther King, Jr., Memorial Day and Labor Day holiday hour.

Effects:

·         Although circulation is not heavy on these days, patrons appreciate the library being open on their days off.

3,000

4

Eliminate all travel.

Would eliminate support staff training, conferences and library organization dues for professional staff.

Effects: 

·         Would eliminate all training and conference travel for professional and support staff.

·         Reduced knowledge of state and national library services and trends.

·         Less effective use of existing library technology tools (Innovative system, on-line database searching, etc.)  

8,865

5

Eliminate rental of foreign language materials.

Would eliminate access to 600 Spanish, Asian and French materials currently borrowed from the State’s Foreign Language Collection.

Effects:

·         Use of this service is increasing each year.

·         Would eliminate a service that addresses needs of Chapel Hill’s diverse community.

·         Would eliminate a very cost-effective service. 

2,000

6

Eliminate webmaster position.

This would save 12 Public Services staff hours per week.

Effects:

·        Would affect the timeliness of information on the library’s new web page.

12,480

 

7

Reduce number of electronic database subscriptions.

Would eliminate 2 of 3 existing databases (Heritage Quest; Ancestry.com)

Effects:

·         Would significantly reduced the library’s genealogy resources.

1,542

8

Reduce staff time spent in mending/processing materials.

This would save 10 Technical Services Division staff hours per week.

Effects:

·         Would significantly reduce the amount of mending and repair of the collection weekly. 

·         Would result in purchasing replacement copies instead of broadening the depth of the collection.

8,223

9

Eliminate interlibrary loan.

This could save 18.75 Public Services Library Assistant III staff hours (20,000), service charges (2,000) and postage (1,350). 

Effects:

·         Citizens would be limited to materials owned by this library, because lending libraries only lend to other libraries, not to individual citizens.  

·         Would eliminate a basic library service.

·         Would have minimal effect on the majority of citizens; last year, the library borrowed 731 items for citizens.

23,350

 

10

Reduce materials budget by 6.8%.

Effects: 

·         Would reduce the annual accession of adult and juvenile materials by approximately 575 items (14,400 items/25 per item = 576 items).

·         Would increase the turnover rate (i.e. depreciation) of the existing collection.

·         Could increase staff time spent mending and binding the existing collection. 

·         Could reduce patron satisfaction.

·         Reducing the collection budget negatively affects collection development goals set out in the Library Master Plan. 

·         Would reduce the amount of staff time spent selecting materials.

14,400

 

 

 

 

TOTAL

77,860

 

 

OPTION 2:  POTENTIAL INCREASED REVENUE ($62,140)

 

#

REVENUE

RECOMMENDED?

AMOUNT

1

Pay phone installation.

Effect:  Planned for implementation late 2004-05 to replace free local phone in lobby.

Y

3,000

2

$20 UNC and profit group use of meeting room.

Effect:  Meeting room space is not currently available to UNC and profit groups.  Could anticipate ongoing interest in this service.

Y

1,000

3

$10 increase in out of county card (from $50 to $60 annually)

Effect:  Minimal.

Y

5,140

4

$5 study room fee.

Effect:  This fee would primarily affect students and tutors.

N

5,000

5

$10 citizen use of meeting room.

Effect:  Would reduce the “free” aspect of library commons space recommended in the Library Master Plan.

N

10,000

6

Metered parking.

Effect:  $.25 per hour for 100 spaces could generate 85,000 in revenue and 40,000 in expenditures to monitor spaces and collect fees). 

 

N

45,000

7

Maintenance of Effort reduction.

Effect:  There would be a proportional loss of state aid if the Town fails to meet Maintenance of Effort.  A  Town budget cut of 20% could result in a 20% cut in State Aid.

 

NA

-7.000

 

TOTAL

 

62,140