HomeMy WebLinkAbout#05 - Library FundSTAFF REPORT
DATE: March 13, 2018
DISCUSSION
ITEM #5
AGENDA ITEM: Library Fund Shortfall
SUBMITTED BY: Kristina Handt, City Administrator
BACKGROUND:
In May 2017, the Lake Elmo Library Board and City Council approved an agreement with Washington
County to bring the local library back into the Washington County System as of 1/1/18. The agreement
had a number of provisions including that the City will convey $150,000 of its library funds to the County
on January 1, 2018. Staff has been waiting to collect all of the final bills from 2017 before making the
payment to the County.
The County and Library Board did agree in December to have contractors come in and remove asbestos
during the time the library was closed down the last week of the month. Since it was still under city
ownership at that time the city was to pay the bill but the County will allow that expense ($4,173) to be
deducted from the $150,000 total.
ISSUE BEFORE COUNCIL:
How should the shortfall in the Library Fund be addressed?
PROPOSAL DETAILS/ANALYSIS:
The balance of the library fund at 12/31/16 was approximately $174,000. In May I had asked the Library
Director for his projection of the fund through 12/31/17 if the library rejoined the county system. He
estimated there would be about $10,000 left above the $150,000 commitment to the County.
However, there were some significant deviations from the projections including library collection
purchases, parking lot consultant fees, minor repairs and maintenance, and library card reimbursements.
As a result, the fund is short $7,966 of the $150,000 commitment after factoring in the abatement costs.
We cannot have an account go negative without a plan to transfer funds to cover the shortfall. Staff is
looking for direction on how to cover the shortfall in the Library Fund.
FISCAL IMPACT:
Since the city is contractually obligated to pay $150,000, the $7,966 shortfall will need to be made up from
other city funds.
OPTIONS:
1)Transfer funds from the City Facilities Fund-current balance is about $255,000. Staff expects
another $4,750 for the Brookfield fit test to come from the fund this year as well as about $51,000
for the library parking lot paving.
2) Transfer funds from the General Fund
ATTACHEMENT:
•Library Fund Financials as of March 7, 2018